Bishop’s Breakfastfive smooth stones

Talk by Simon Duffy of The Centre for Welfare Reformfor members of the Church of England

1.Welfare state is a good thing2.But its designed wrong3.Many of our beliefs about it are false4. It is biased against the poor5.Citizenship is the key to its reform

1. Welfare state is good

• Morality demands we create a fair society

• Happiness demands security and freedom

• Efficiency demands we use all our talents

• Prudence demands we avoid fear & crisis

Fear and insecurity breeds scapegoating, terror, war and

revolution

2. Welfare is designed wrong

• Hyper-taxation for poor and disabled (e.g. poorest 10% pay highest tax rate, 47%)

• Limited rights, choice and control (e.g. families can’t choose education)

• Subsidises services, not people (e.g. £3 billion spent on 21,000 in private institutions)

• Undermines communities and families (e.g. social care awaits family crisis)

• Rooted in 1940s paternalism

[The ill-fated Pruitt-Igoe

housing project]

Government doesn’t always

know best

3. Policy is based on myth

£1 billion benefit fraud, £15 billion tax fraud, £16.7 billion unclaimed benefits, £28 billion of benefit cuts.

Benefits after tax is only £25 billion, most state spending is on middle-earning employees.

Current economic crisis was not created by poor, but by bad lending to home owners and middle earners.

public expenditure has changed little

benefits are not technically public expenditure - they are a form of income

adjustment

the poorest pay the highest levels of taxation

there are very few fit and healthy working age adults who just rely on benefits

the UK is the second most centralised welfare state in the world (after New

Zealand)

benefits fraud is dwarfed by fraud by taxpayers and by government itself

4. System is biased against the poor

• The poor often pay marginal rates of tax that can exceed 100%

• You must get poor and stay poor to get social care

• Only the better off can choose how they get education, health or social care

• Poor is very poor: as low as £7 per day - poorest 10% of families - £9.50 per day.

5. Citizenship is the key to reform

• Human rights at heart of system

• Minimum universal securities as rights

• Fair and integrated tax-benefit system

• Individual freedom for all• Families and communities

respected

1. Join the Campaign for a Fair Societywww.campaignforafairsociety.org

2.Subscribe to The Centre for Welfare Reform

www.centreforwelfarereform.org3.Twitter users can follow #fairsociety

If you want to get more involved