Skip to main content

‘Employment First’: Activating the British Welfare State

  • Chapter

Over the past decade there has been radical change in the British welfare state. The Government has introduced a new welfare contract where the ‘rights and responsibilities’ of working age adults receiving state benefits have been redefined to encourage, and increasingly require, their active participation in paid employment. This has involved a parallel ‘activation’ of entitlements and obligations and of the services delivered by welfare state institutions.

This chapter considers the new combinations of job search assistance, obligations and programmes; and ‘make work pay’ reforms, introduced in Great Britain (GB) since 1997. It assesses evidence on the impacts of the strategy and the challenges faced as activation requirements are extended to workless lone parents and people with health problems and disabilities.

The British case merits attention for several reasons. Firstly, New Labour has sought explicitly to synthesise ‘what works’ from both neo-liberal and social democratic welfare traditions with some analysts discerning the emergence of an “Anglo-social welfare model, incorporating and reconciling economic performance and flexibility with equality and social justice” (Dixon and Pearce 2005).

This is a preview of subscription content, log in via an institution.

Buying options

Chapter
USD   29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD   129.00
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD   169.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD   169.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Learn about institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Abbreviations

BA:

Benefits Agency

CMP:

Condition Management Programme

CTB:

Council Tax Benefit

CTC:

Child Tax Credit

DSS:

Department of Social Security

DWP:

Department of Work and Pensions

ECHR:

European Convention of Human Rights

EMTR:

Effective Marginal Tax Rate

ESA:

Employment Support Allowance

ES:

Employment Service

EZ:

Employment Zone

GB:

Great Britain

GDP:

Gross Domestic Product

Hansard:

Official Record of Parliamentary Proceedings, Written Answer from Minister

HB:

Housing Benefit

HMT:

Her Majesty’s Treasury

HRA:

Human Rights Act

IAP:

Intensive Activity Period

IB:

Incapacity Benefit

IFS:

Institute for Fiscal Studies

IS:

Income Support

JCP:

Jobcentre Plus

JSA:

Jobseekers Allowance

JSAg:

Jobseekers Agreement

LFS:

Labour Force Survey

MSC:

Manpower Services Commission

NAO:

National Audit Office

NDDP:

New Deal for Disabled People

NDLP:

New Deal for Lone Parents

NDPA:

New Deal Personal Adviser

NDYP:

New Deal for Young People

ND25 plus NEP:

National Employment Panel

NI:

National Insurance

NMW:

National Minimum Wage

OECD:

Organisation for Economic Cooperation and Development

ONS:

Office for National Statistics

PA:

Personal Adviser

SSAC:

Social Security Advisory Committee

UK:

United Kingdom

WBLA:

Work Based Learning for Adults

WFI:

Work Focused Interview

WFTC:

Working Families Tax Credit

WTC:

Working Tax Credit

References

  • Adam S, Brewer M, Shephard A (2006) Financial work incentives in Britain: Comparisons over time and between family types. Working Paper 06/20. IFS, London

    Google Scholar 

  • Adam S, Browne J (2006) A Survey of the UK Tax System. IFS, London

    Google Scholar 

  • Alcock P, Beatty C, Fothergill S, Macmillan R, Yeandle S (2003) Work to Welfare: How Men Become Detached from the Labour Market. University Press, Cambridge

    Google Scholar 

  • Bivand P (2006) Has the JSA claimant count peaked? Working Brief No 177. Centre for Economic and Social Inclusion, London

    Google Scholar 

  • Blackmore M (2001) Mind the Gap: Exploring the Implementation Deficit in the Administration of the Stricter Benefits Regime. Social Policy and Administration 35: 2

    Article  Google Scholar 

  • Blundell R (2001) Welfare to Work: Which Policies Work and Why? Keynes Lectures in Economics. University College and IFS, London

    Google Scholar 

  • Bonjour D, Dorsett R, Knight G, Lissenburgh S, Mukherjee A, Payne J, Range M, Urwin P, White M (2001) New Deal for Young People: National Survey of Participants: Stage 2. Employment Service Research and Development Report 45, Sheffield

    Google Scholar 

  • Brewer M, Shephard A (2004) Has Labour Made Work Pay? Joseph Rowntree Foundation, York

    Google Scholar 

  • Bryson A (2003) From welfare to workfare. In: Millar J (ed.) Understanding Social Security: Issues for Social Policy and Practice. Policy Press, Bristol

    Google Scholar 

  • Carmel E. and Papadopoulos T. (2003) The new governance of social security in Britain. In: Millar J. (ed.) Understanding Social Security: Issues for Social Policy and Practice. Policy Press, Bristol

    Google Scholar 

  • Carpenter H (2006): Repeat jobseeker’s allowance spells. Research Report No 394. DWP, London

    Google Scholar 

  • CESI (2007) New deal: 10 key facts. Working Brief 181. Centre for Economic and Social Inclusion, London

    Google Scholar 

  • Clasen J, Davidson J, Ganßmann H, Mauer A (2004) Non-Employment and the Welfare State: The United Kingdom and Germany Compared. Anglo German Foundation, Berlin and London

    Google Scholar 

  • Considine M (2005) The Reform that Never Ends: Quasi-Markets and Employment Services in Australia. In: Sol E, Westerveld M (eds.) Contractualism in Employment Services: A New Form of Welfare State Governance. Kluwer Law International, Aspen Publishers

    Google Scholar 

  • Conway T, Groves A (2006) What do we know about the impact of sanctions on young people? Unpublished Presentation, DWP, London

    Google Scholar 

  • Dixon M, Pearce N (2005) Social justice in a changing world: The Emerging Anglo-Social Model. In: Pearce N, Paxton W (eds.) Social Justice: Building a Fairer Britain. Politico’s Publishing, London

    Google Scholar 

  • Dolton P, O’ Neill D (1995) The impact of Restart on reservation wages and long term unemployment. Oxford Bulletin of Economics and Statistics, vol 57 no 4. Blackwell, Oxford

    Google Scholar 

  • Dolton P, O’Neill D (2002) The long-run effects of unemployment monitoring and worksearch programs: Experimental evidence from the United Kingdom. Journal of Labour Economics 20 (2): 381-403

    Article  Google Scholar 

  • DSS (1998) A New Contract for Welfare: Principles into Practice. Cm 4101. The Stationary Office, London

    Google Scholar 

  • DWP (2006) A New Deal for Welfare: Empowering People to Work. Cm 6730. DWP Five Year Strategy, London

    Google Scholar 

  • DWP (2007) Ready for Work: Sull Employment in Our Generation. Cm 7290. DWP, London

    Google Scholar 

  • Evans M (2003) New deal for lone parents: Six years of operation and evaluation. In: Millar J, Evans M (eds.) Lone Parents and Employment: International Comparisons of What Works. DWP, Sheffield

    Google Scholar 

  • Field F, White P (2007) Welfare isn’t Working: The New Deal for Young People. Reform, London

    Google Scholar 

  • Finn D (2003) The employment first welfare state: Lessons from the new deal for young people. Social Policy and Administration 37 (7): 709-724

    Article  Google Scholar 

  • Finn D, Blackmore M, Nimmo M (1998) Welfare to Work and the Long Term Unemployed: They’re Very Cynical. Unemployment Unit and Youthaid, London

    Google Scholar 

  • Goode J, Callender C, Lister R (1998) Purse or Wallet? Gender Inequalities and Income Distribution within Families on Benefits. Policy Studies Institute, London

    Google Scholar 

  • Gregg P, Harkness S, McMillan L (2006) Welfare to Work Policies and Child Poverty. Joseph Rowntree Foundation, York

    Google Scholar 

  • Hales J, Taylor R, Mandy W, Miller M (2003) Evaluation of Employment Zones: Report on a Cohort Survey of Long-Term Unemployed People in the Zones and a Matched Set of Comparison Areas. National Centre for Social Research, London

    Google Scholar 

  • Harker L (2006) Delivering on Child Poverty: What Would It Take? A Report for the Department of Work and Pensions, Cm 6951. HMSO, London

    Google Scholar 

  • Hasluck C (2002) The Re-Engineered New Deal 25 Plus. A Summary of Recent Evaluation Evidence. Employment Service Research and Development Report, WAE 137, Sheffield

    Google Scholar 

  • Hasluck C, Green AE (2007) What works for whom? A review of evidence and metaanalysis for the DWP. Research Report No. 407, London

    Google Scholar 

  • HMT (2006) Prosperity for All in the Global Economy - World Class Skills, Leitch Review of Skills. HM Treasury, London

    Google Scholar 

  • Hoggart L, Campbell-Barr V, Ray K, Vegeris S (2006) Staying in Work and Moving Up: Evidence from the UK Employment Retention and Advancement Demonstration. RR 381. DWP, London

    Google Scholar 

  • Hutton J (2006) Welfare Reform: 10 years on, 10 years ahead, speech by the Secretary of State for Employment, 18 December, Institute of Public Policy Research, London

    Google Scholar 

  • Hutton J (2007) Building Sustainable Communities Through Partnership: Eradicating Child Poverty, speech by the Secretary of State for Work and Pensions at the Commonwealth Club, London

    Google Scholar 

  • JCP (2006) Jobcentre Plus Annual Report and Accounts 2005-06. HC1650. The Stationery Office, London

    Google Scholar 

  • Keter V (2007) Work Life Balance. Standard Note SN/BT/348. House of Commons Library, London

    Google Scholar 

  • King D (1995) Actively Seeking Work? The Politics of Unemployment and Welfare Policy in the United States and Great Britain. University Press, Chicago

    Google Scholar 

  • Knight G, Speckesser S, Smith J, Dolton P, Azevedo J (2006) Lone parents work focused interviews/New deal for lone parents: Combined evaluation and further net impacts. Research Report No 368. DWP, London

    Google Scholar 

  • Knight G, Thomas A (2006) Final report: LPWFI and review meetings administrative data analyses and qualitative evidence. Research Report 315. Policy Studies Institute, DWP, London

    Google Scholar 

  • Manning A (2005) You can’t always get what you want: The impact of the UK jobseeker’s allowance. CEP Discussion Paper No 697. Centre for Economic Performance, London School of Economics

    Google Scholar 

  • McVicar D (2006) Job Search Monitoring Intensity and Unemployment Exit: Evidence from a Jobseeker’s Allowance Natural Experiment. Duncan School of Management and Economics, Queen’s University Belfast

    Google Scholar 

  • NAO (2003) Getting It Right, Putting It Right: Improving Decision-Making and Appeals in Social Security Benefits. National Audit Office, London

    Google Scholar 

  • NAO (2006) Jobcentre Plus: Delivering Effective Services Through Personal Advisers. National Audit Office, London

    Google Scholar 

  • Nickell S (1999) Unemployment in Britain. In: Gregg P, Wadsworth J (eds.) The State of Working Britain. University Press, Manchester

    Google Scholar 

  • O’Connor W, Bruce S, Ritchie J (2000) New Deal for Young People: National FollowThrough. Employment Service Research and Development Report, ESR47. National Centre for Social Research, Sheffield

    Google Scholar 

  • O’Donnell K (2001) New Deal Survey of Leavers to Unknown Destinations. ORC International, Employment Service Research and Development Report, ESR63, Sheffield

    Google Scholar 

  • OECD (2006) Activation Strategies and Performance of Employment Services in the Netherlands, Germany and the United Kingdom. OECD, Paris

    Google Scholar 

  • PAC (2006) Tax Credits: Putting Things Right. Government Response to the Committee’s Second Report of the Public Administration Committee, Session 2005-2006. HC 1076. The Stationery Office, London

    Google Scholar 

  • Palmer G, MacInnes T, Kenway P (2006) Monitoring Poverty and Social Exclusion 2006, Indicator 6A. New Policy Institute and Joseph Rowntree Foundation, London

    Google Scholar 

  • Phillips D, Sibieta L (2006) A Survey of the UK Benefit System. IFS, London

    Google Scholar 

  • PM (1997) Speech by the Prime Minister the Rt Hon Tony Blair MP at the Aylesbury Estate, Southwark, on Monday 2 June, London

    Google Scholar 

  • Price D (2000) Office of Hope: A History of the Employment Service. Policy Studies Institute, University of Westminster, London

    Google Scholar 

  • Rayner E, Shah S, White R, Dawes L, Tinsley K (2000) Evaluating Jobseeker’s Allowance: A Summary of the Research Findings. DSS Research Report No. 116. DSS, London

    Google Scholar 

  • Riley R, Young G (2001) The New Deal for Young People: Implications for Employment and the Public Finances. Employment Service Research and Development Report, ESR 62. National Institute for Social and Economic Research, Sheffield

    Google Scholar 

  • Rosenthal P, Peccei R (2004) Consuming work: Front-line workers and their customers in jobcentre plus. The Management Centre Research Papers No 30. Kings College, University of London

    Google Scholar 

  • SSAC (2006) Sanctions in the benefit system: Evidence review of JSA, IS and IB sanctions. Occasional Paper No. 1. Social Security Advisory Committee, London

    Google Scholar 

  • Sunley P, Martin R, Nativel C (2005) Putting Workfare in Place: Local Labour Markets and the New Deal. Blackwell, Oxford

    Google Scholar 

  • Sweeney K, McMahon D (1998) The effect of jobseeker’s allowance on the claimant count. Lab Mark Trends 106 (4): 195-203

    Google Scholar 

  • Tetteh W (2007) Social indicators. Research Paper 07/02. House of Commons Library, London

    Google Scholar 

  • W and PSC (2006) The Efficiency Savings Programme in Jobcentre Plus. Second Report of the Work and Pensions Committee, Session 2005-2006, vol I and II, HC 834-I&II. The Stationery Office, London

    Google Scholar 

  • Wells W (2001) From restart to the new deal in the United Kingdom. In: Labour Market Policies and the Public Employment Service. OECD Proceedings, Paris

    Google Scholar 

  • White M (2004) Effective job search practice in the UK’s mandatory welfare-to-work programme for youth. PSI Research Discussion Paper 17. Policy Studies Institute, London

    Google Scholar 

  • White M, Lakey J (1992) The Restart Effect. Policy Studies Institute, London

    Google Scholar 

  • White M, Riley R (2002) Findings from the macro evaluation of the new deal for young people. Research Report No. 168. DWP, London

    Google Scholar 

  • Wright S (2003) The street level implementation of unemployment policy. In: Millar J (ed.) Understanding Social Security: Issues for policy and practice. The Policy Press, Bristol

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2008 Springer-Verlag Berlin Heidelberg

About this chapter

Cite this chapter

Finn, D., Schulte, B. (2008). ‘Employment First’: Activating the British Welfare State. In: Eichhorst, W., Kaufmann, O., Konle-Seidl, R. (eds) Bringing the Jobless into Work?. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-77435-8_8

Download citation

Publish with us

Policies and ethics