The moral hazard of conditionality: Restoring the integrity of social security law

This article examines the extent to which the Australian and UK social security systems meet their legal obligations to provide basic relief to citizens in need. Conditionality and “mutual obligation” are at the core of both the UK and Australian social security systems and are based on the concept of moral hazard, the goal being to ensure that claimants do not consider living on benefits to be preferable to engaging in paid work. Yet, we argue that the element of “mutuality” is missing in both systems; welfare claimants are subject to myriad conditions and obligations, whilst the state operates free of any legal responsibility to provide even basic relief to those in need, to prevent or alleviate extreme poverty and destitution. We outline the extent to which Australian and UK social security laws require governments to relieve destitution, examining both domestic and human rights law. We conclude that legal protections are weak and that both systems fail to meet the basic conditions of humanity toward their citizens. On this basis, we argue that such failings demonstrate a lack of integrity which undermines the standing of both the UK and Australia to invoke a claim of moral hazard to defend claimant conditionality.     

Conceptualising dignity in the context of social security: Bottom-up and top-down perspectives

Dignity and social security have been closely associated since at least the Universal Declaration of Human Rights in 1948, but there is a lack of clarity around what dignity means in this context. This article explores how two key stakeholders—out-of-work benefit recipients and policymakers—understand dignity in the context of social security, drawing on qualitative research with each group. The evidence presented notes a relative absence of direct references to dignity among policymakers, although related issues are nonetheless discussed, whereas benefit recipients commonly articulate experiences of undignified treatment and the negative impact this has on their lives. This article's exploration of dignity is of particular relevance to Scotland, where recent framework legislation includes the principle that their security system should be underpinned by “respect for the dignity of individuals.” The authors propose that a social security system that protects dignity must take account of distributional, relational, and intrinsic aspects of dignity—providing sufficient income, treating users with respect, and avoiding interventions or discourses that are disrespectful and dehumanizing. Further, the authors question whether it is possible for dignity to enjoy meaningful protection within highly disciplinary conditional welfare regimes.     

Frontline implementation of welfare conditionality in Norway: A maternalistic practice

Welfare conditionality is both ambitious and ambiguous for the frontline workers who put policy into practice. Since January 2017, the Norwegian frontline service should require social assistance benefit recipients under the age of 30 to participate in some sort of work-related activation, so-called mandatory activation. Drawing on qualitative interviews with frontline workers at local offices in the Norwegian Public Welfare Service (NAV), we investigate how the requirement is implemented in a context of a professionalised social welfare service. Mandatory activation is arguably a paternalistic measure. Drawing on Bernardo Zacka's concept of moral dispositions and Laura Specker Sullivan's concepts of maternalism, our findings indicate that at the frontline, mandatory activation policies are implemented by maternalistic decision making, emphasising the interpersonal relation between trained caseworkers and clients. The caseworkers use their discretionary powers in the implementation of conditionality and sanctions by emphasising care and support as embedded in the strict rules.     

Paternalism in Australian welfare policy

Since at least the 1990s, policies comprising welfare reform in Australia have focused on securing employment for jobless people. This article demonstrates that these policies are highly paternalistic, and argues that despite the absence of the term ‘paternalism’ from relevant government discourse, paternalism is indeed a substantial characteristic of the policies. Such policies have been substantially justified through appealing to the objective of advancing the interests of those people subject to the policies while simultaneously involving compulsion. The research is based on evidence from 1996 to 2011. Through the analysis of government documents and interviews with policy makers, the presence of a benevolent justification is identified and analysed, focusing on two subordinate justifications: reducing welfare dependency, and promoting social inclusion. Policies aimed at getting people into work are then examined, where it is found that compulsion is the primary policy instrument. It is shown that the compulsive elements in workfare, when linked to the objective of helping workfare subjects, renders the policies implicitly paternalistic.     

The impact of the use of the social welfare services or social security benefits on attitudes to social welfare policies

Muuri A. The impact of the use of the social welfare services or social security benefits on attitudes to social welfare policies
Int J Soc Welfare 2010: 19: 182–193 © 2009 The Author(s), Journal compilation © 2009 Blackwell Publishing Ltd and the International Journal of Social Welfare. This article investigates the attitudes of citizens and clients to social welfare services and social security benefits. The data come from a Finnish national survey conducted at the end of 2006. First, the article overviews the previous welfare‐state studies relating especially to the theoretical perspectives of self‐interest and legitimacy. The empirical analysis indicates (i) that a different operation of self‐interest can only weakly explain the differences in attitudes between services and benefits; (ii) that there is general support for Finnish social welfare services and social security benefits, which, however, is mixed with growing criticism among women and pensioners who are supposed to benefit most from the welfare policies; and (iii) that such determinants of attitude as gender, use and, to some extent, lifecycle have become as important as class‐related factors such as income and education.     

Penal and welfare conditionality: Discipline or degradation?

This paper aims to complement analyses of welfare conditionality by examining what can be learned from studies of conditional punishment in the criminal justice system. Drawing on a range of recent studies, I explore lived experiences of the conditionality attendant on penal forms of supervision; penal forms that have expanded rapidly in recent decades. I argue that, to paraphrase Stan Cohen, such supervision is as much about the dispersal of degradation as it is about the dispersal of discipline. Indeed, in contemporary western societies, both in punishment and in welfare systems, I suggest that conditionality functions less to discipline poor and marginalised people and more to disqualify them from the entitlements of ordinary citizenship. In so doing, conditionality constructs them as denizens, thus serving to limit the liabilities for the state that arise from social inequalities. Extending Delroy Fletcher and Sharon Wright's metaphor, the abusive slaps now meted out in concert by both hands of the penal state are as much about degrading and denying the entitlements of “needy” denizens as they are about influencing their conduct. But crucially, even within the increasingly restrictive context created by these developments, penal practitioners can and do provide care and assistance.     

The decomposition of social policy in Sweden

The traditionally strong dominance of the state in social security in Sweden has been replaced by a more mixed structure. Individuals are increasingly covered by a mix of private welfare, employment-based corporate welfare and state programmes. There are several reasons behind this development: shifts in the economic and political conditions, strong tax incentives for the individual to buy private insurance, increasing problems for the public system in covering the loss of income for middle and high income earners, repeated media reports that the public welfare system will go bankrupt in the near future and increasing reports on free-riding and cheating in the area of public insurance. The advantage of the more mixed system may be its similarities to social insurance in some of the European Community Member States. However, from a social policy point of view there are also some dangers. There will be increasing tendencies towards inequality. In particular, the difference in social security conditions between the skilfully employed and marginal groups will be even more marked. The unemployed, the young and people with physical or mental handicaps will be left outside the private and corporate structures. There is also a marked risk that some individuals be reach a level of coverage well above the loss of income, and this will be a disincentive to work. Private and corporate welfare systems are also largely invisible in the sense that individuals may not even know under what conditions they are covered. Another problem is that public attitudes towards the public welfare system will increasingly become more negative and different in various parts of the population. The effect of this may be a vicious circle: public social policy becomes increasingly inefficient and unpopular among the working population and remains only as a marginal system for small marginal groups.     

Introduction to the special issue on welfare conditionality in Australia

Conditionality in Australia’s welfare state has sustained a significant academic critique, including the critique published in this journal. In this Special Issue of the Australian Journal of Social Issues, we contribute to the existing critical literature on welfare conditionality. This Special Issue aimed to provide empirical scrutiny into welfare reform and conditionality in Australia. The articles extend our understanding of welfare conditionality’s underpinnings and its lived effects. These case studies illuminate the aspects of welfare conditionality that have not received enough attention: the role of technology, the question of mobility, the relationship with housing and the little thought given to the state’s role in mutual obligation. What is clear is that the individualisation of structural problems is not just a theoretical and political misstep ripe for critique, but leads to the formulation of policies that impact marginalised people’s capacity to shape life on their own terms. Through different empirical foci, all papers in this Special Issue demonstrate how welfare conditionality is put forward as a solution to address the consequences of structural disadvantage.     

China: developmentalism and social security

China began its social security reform when the market-oriented economy was first promoted in the late 1970s. Initiatives have been taken to replace the employer-based labour insurance model with a largely social insurance model. However, it is a mistake to argue that China is pursuing a neo-liberal agenda in its social initiatives. Instead, the state has played a major role in the process. Based on a developmental analysis, it is argued that the direction of change is generally encouraging. The emerging social insurance programme has the following advantages: it widens coverage, facilitates economic development, seeks a minimum entitlement, fosters social integration, and enhances individual participation and responsibility. The creation of an economically and socially viable social insurance programme will support the economic development of the country in the twenty-first century.     

Social workers' attitudes towards social welfare policy

As social workers are widely called upon to take an active role in influencing social welfare policy, a better understanding of their views on the welfare state is crucial. This study examines the attitudes of 422 Israeli social workers from diverse social welfare agencies regarding social welfare policy. The framework for understanding these attitudes includes the notions of professionalisation processes, social work values, and the class position of social workers. The study's findings indicate that support for the welfare state is quite moderate and these reflect more the class affiliation of social workers than their professional values and the professionalisation process.     

Work,welfare, and wellbeing: The impacts of welfare conditionality on people with mental health impairments in the UK

The personal, economic, and social costs of mental ill health are increasingly acknowledged by many governments and international organisations. Simultaneously, in high-income nations, the reach of welfare conditionality has extended to encompass many people with mental health impairments as part of on-going welfare reforms. This is particularly the case in the UK where, especially since the introduction of Employment and Support Allowance in 2008, the rights and responsibilities of disabled people have been subject to contestation and redefinition. Following a review of the emergent international evidence on mental health and welfare conditionality, this paper explores two specific issues. First, the impacts of the application of welfare conditionality on benefit claimants with mental health impairments. Second, the effectiveness of welfare conditionality in supporting people with experience of mental ill health into paid work. In considering these questions, this paper presents original analysis of data generated in qualitative longitudinal interviews with 207 UK social security benefit recipients with experience of a range of mental health issues. The evidence suggests that welfare conditionality is largely ineffective in moving people with mental health impairments into, or closer to, paid work. Indeed, in many cases, it triggers negative health outcomes that make future employment less likely. It is concluded that the application of conditionality for people with mental health issues is inappropriate and should cease.     

Evaluating social investment in disability policy

Disability policy in European countries is displaying a shift towards social investment: increasing human capital and access to the labour market. The reasoning that underlies this transition is that disabled persons would benefit from mainstream employment, but are impeded in traditional policy by deficiencies in labour supply and demand. However, the shift towards more activating policies in many countries is accompanied by a decline in social protection. It is unclear whether social investment may effectively promote the employment chances of disabled persons within this context. The present research examines this question through a quantitative, cross-sectional, multilevel analysis on microdata from 22 EU countries. Our findings suggest greater activation to predict lower employment chances, while reducing passive support shows mixed effects. Conversely, measures for facilitation in daily life predict greater employment chances, as do measures for sheltered work. These findings raise questions over the value of social investment for disabled persons—and underline the need to overcome broader barriers in the labour market and in society.     

Culture and social policy: a developing field of study

This article takes the increased interest in the relation between culture and social policy as a starting point, and discusses how this increasing attention can be understood as the result of contextual factors such as economic, social and academic trends. It discusses these matters and at the same time reviews briefly some of the main findings of studies that contain a cultural perspective in analysing social policy. A second issue concerns the specific character of cultural perspectives in such analyses. Thus far, most studies in the field have been guided by a notion of culture as consisting of the values, norms and beliefs of welfare state actors. Recently, this notion has been questioned by advocates of the so-called 'cultural turn', who suggest that a radical change in the cultural analysis of social policy is required. The article concludes with a discussion of their claims.     

Tensions and contradictions in Australian social policy reform: compulsory Income Management and the National Disability Insurance Scheme

This paper explores contemporary contradictions and tensions in Australian social policy principles and governmental practices that are being used to drive behavioural change, such as compulsory income management. By means of compulsory income management the Australian Government determines how certain categories of income support recipients can spend their payments through the practice of quarantining a proportion of that payment. In this process some groups in the community, particularly young unemployed people and Indigenous Australians, are being portrayed as requiring a paternalistic push in order to make responsible choices. The poverty experienced by some groups of income support recipients appears to be seen as a consequence of poor spending patterns rather than economic and social inequalities. By contrast, Australia's National Disability Insurance Scheme (NDIS) has been constructed as a person centred system of support that recognises the importance of both human agency and structural investment to expand personal choices and control. Here we look at the rationale guiding these developments to explore the tensions and contradictions in social policy more broadly, identifying what would be required if governments sought to promote greater autonomy, dignity and respect for people receiving income support payments in Australia.     

Intensity,moderation, and the pressures of expectation: Calculation and coercion in the street-level practice of welfare conditionality

This article offers a street-level perspective on welfare conditionality as it was practiced in contracted-out UK activation programs between 2008 and 2015. Drawing on observation and in-depth interviews, the article illustrates the ways that behavioral conditionality provided street-level workers with the means to intensify or moderate activation for particular claimants. Responding to arguments about the curtailment of street-level discretion, the article argues that in the particular context of target-driven, work-first, and otherwise highly constrained services, discretion resided in the ability to intensify or moderate conditionality and its coercive potential—in decisions about how, on whom, and to what extent it would be applied. The article argues that attending to this form of discretion provides an alternative frame through which to view the differentiated treatment typically understood as “creaming” and “parking.” In so doing, the article problematizes accounts that draw clear lines between calculative, normative, and dispositional forms of street-level reason and practice. It shows how advisors' responses to the “street-level calculus of choice” were articulated in terms of expectation, where attempts at future-oriented calculation necessarily entailed making other forms of speculative and normative judgement about claimants and their situations. The article thus contributes to an understanding of both the causes and meaning of differentiated treatment in conditional welfare services.     

Punitive welfare reform and claimant mental health: The impact of benefit sanctions on anxiety and depression

Internationally, policymakers assume that sanctioning claimants of unemployment benefits will engender both improved employment outcomes and wider positive effects. A growing evidence‐base challenges these expectations, though additional insight is needed from large‐scale longitudinal research. This article contributes by conducting a quantitative investigation into the mental health impacts of benefit sanctions. To do so, it focuses on a recent period in UK sanctions policy in which rates of sanctions varied markedly and their length was substantially increased. Using quarterly panel data for local authorities in England (Q3 2010–Q4 2014) and fixed effects models that control for important confounders, the analysis provides robust evidence that Jobseeker's Allowance (JSA) sanctions lead to increases in self‐reported anxiety and depression. Evidence of this adverse impact is particularly clear following the increase in the length of sanctions in October 2012. The results have important implications for contemporary social security policy, which is underpinned by a similarly punitive sanctions regime. Whilst additional individual‐level research is needed to fully consider the causal relationships in operation, the findings support a precautionary approach that should seek to minimise the harm associated with sanctions. This implies taking steps to reduce both the severity and frequency of applied sanctions.     

Introduction: social policy, economic growth and developmental welfare

Although the notion of developmental welfare is not new, it is only in recent times that its central premises have again attracted attention in social policy circles. Since developmental welfare offers an opportunity to challenge the neo-liberal claim that social expenditures harm the economy, and that economic development requires retrenchments in state welfare, more information about this approach is needed. This article discusses the developmental welfare approach with reference to neo-liberalism's current hegemonic influence on social policy. It traces the historical evolution of developmental welfare, discusses its theoretical implications and outlines its practical proposals.     

Improving gender outcomes in social security retirement systems

Assessing whether retirement systems meet their varying objectives requires analysing outcomes across different categories of beneficiaries with different working, financial, demographic, and family situations. Policymakers should therefore assess systems on the distribution of outcomes rather than average outcomes. Much has been written about the gender inequalities inherent in labour markets and how these are reflected and reproduced in pension systems, and there is growing evidence that recent reforms have exacerbated these trends. Recent research has turned to the policy measures available to policymakers to forestall or reverse these trends, but this literature tends to overlook important administrative measures that have the potential to reduce inequalities in access that could improve pension outcomes for women within the current policy framework. This paper examines the main issues surrounding gender inequality in retirement outcomes; explores the implications of recent reform trends in light of the differential outcomes for women, including policy options to mitigate the negative impacts; and concludes with a review of key administrative measures, including streamlining affiliation procedures, improving information, and simplifying payment of contributions and receipt of benefits and better compliance of employers.     

Social policy and social order in East Asia: an evolutionary view

This study contrasts two varieties of comparative analysis: on one hand, researchers may look to explain the historical development of the East Asian welfare systems (EAWS) with an eye towards delineating some common trends, while on the other hand, they may seek to recognize the institutional features of these systems through the cross-regime comparisons. We discuss problems in the operation of these two approaches, instead choosing to employ contextual analysis to illuminate developments in social policy in EAWS. This study proposes to understand the policy model of these systems as a two-phase evolution in policy, thus providing a new foundational approach for the study of EAWS.     

The recent evolution of social security coverage in Brazil

Abstract   This article describes and assesses indicators of social security coverage in Brazil over the period 1992 to 2006 for employed workers and the elderly. While the coverage of retired workers has shown some degree of stability over the past years, that of employed workers changed significantly over the period, showing clear signs of deterioration between 1992 and 2002, and of recovery since then. Fewer self-employed persons in agriculture in rural areas (Special Insured Persons, workers with specific social security schemes) accounts for most of the deterioration. The economic recovery and an increase in new registered jobs accounts for most of the improvement in coverage between 2003 and 2006. Administrative and institutional factors also played a relevant role, especially in promoting the inclusion of domestic and self-employed workers as social security contributors.