10 - Social security policies under the Conservatives 2015– 22: austerity, COVID-19 and the living cost crisis

Summary

Introduction

The period following 2015 represented a continuation of the key social security policies begun during the Coalition government of 2010– 15. This phase was characterised by the reduction of protection for working-age individuals and simultaneous enhancement of support for older people. These patterns were largely set in place with the Welfare Reform Act 2012, continued via the Welfare Reform and Work Act 2016 (largely repealing the Child Poverty Act 2010). The social security response to the COVID-19 pandemic showed the potential for change, yet it also highlighted the significant gap between the situation at that time and such transformative measures during more normal times.

In the decade beginning 2010, the most influential reformer, particularly for benefits aimed at working-age recipients, was Iain Duncan Smith. Writing in 2013, he expressed concern about the economic viability of the welfare system. He stated that ‘[t] he welfare bill has become unsustainably expensive’ and unveiled plans for what he described as ‘the most far-reaching change that the welfare system has witnessed in generations’ (Department for Work and Pensions, 2010, p 1). His response was the introduction of Universal Credit. This new system replaced several other benefits, which had somewhat inconsistent rules and procedures. While social security policy is not generally a devolved area of responsibility, Scotland in particular has made some different decisions in this space, with other innovations in Wales, such as piloting a basic income scheme for care leavers (see Chapter 17 for a fuller discussion of devolution).

A number of key strands may be identified during the period of the Coalition government (McKay and Rowlingson, 2016) and until the time of writing. Some of these have an even earlier origin, of course, dating back to the 1980s and evolving since then. We focus on three key patterns of reform – the different strategies according to age, austerity and private arrangements.

First, a significant split in approaches to benefits based solely on the age of recipients. There is an increasingly strong division between benefits for those of working age versus those benefits (pensions) for people of pensionable age.