New Labour’s Welfare Reforms: Anything New?

Abstract

The Labour Government's path to legislative reform of the welfare system has been characterised by internal party dissension, a mauling from both Opposition parties, and repeated defeats in the House of Lords. Two major statutes have been enacted, but with the promise of further modernising reforms to come, tactical considerations in the run-up to a General Election suggest that there may be a lull before the next legislative combat. In the House of Commons the 1999 Welfare Reform and Pensions Bill suffered repeated rebellions from Labour backbenchers, and even though the scale of the revolt declined steadily, from 67 in May to 54 in the final vote in November 1999, risking further difficulties might be considered unwise in the short term of the electoral cycle. Despite many protests, and a background of controversy over the amount of the state retirement pension, the Government refused to back away, and few concessions were made. Having survived one serious battle on welfare reform in 1999, the Government returned for a second round with another controversial set of measures in 2000. Taken together these statutes have made important changes to the social security system, but how far can they be described as a 'New Beveridge?' Both the Welfare Reform and Pensions Act 1999 and the Child Support, Pensions and Social Security Act 2000 are now on the statute book, so it is perhaps a useful moment to reflect on these measures and also to look at their historical context. Alistair Darling, the Secretary of State for Social Security, has repeatedly indicated how welfare reform is central to the Government's whole modernising programme. The aim has been to 'modernise the welfare state so that it meets the modem needs of our country ... I believe our reforms, based on principle and recognising the changes in our society over the past 50 years, will help lay the foundations for a modem welfare state in the 21st century.' In this endeavour, Mr Darling has obviously been following the line promoted by both No. 10 and No. 11 Downing Street. However, the Government's 'big agenda for change and reform' has certainly had a rough passage so far. The Prime Minister has repeatedly declared that 'Welfare reform goes to the heart of what Labour stands for. It is the issue on which our government will be judged'.2