April 27, 2018 / C H Thompson

Social Democratic Approach to Welfare

Social Democratic and New Right are the two main, and polarised, approaches to welfare
the social democratic approach originated in 1940s, based on principles of universalism with cradle to grave support
Social democrats such as Tawney (1931) argue the welfare state should adopt a ‘strategy of equality’ by redistributing wealth from the rich to the poor reducing social marginalization –through progressive taxation
such an approach delivers social cohesion through pensions, free healthcare, free education in order to create a less divided society and greater social integration by reducing the gap between the rich and the poor
argue welfare benefits should be payable to all – universal benefits – regardless of means – therefore no means testing in order to eliminate any stigma from claiming welfare

Consequently:

Wealth is redistributed to reduce social marginalisation and inequality – creating social stability
Redistribution of wealth from the rich to the poor reduces poverty – creating social cohesion
Universal welfare payments have the advantage of having less or no stigma for the welfare recipient – (not so with means-test welfare payments) – so eliminating UNCLAIMED BENEFITS
Social democrats say it’s the government’s responsibility to do the above

Evaluation:

Le Grand (1982) noted how the middle-classes benefitted more from the NHS and state education
Universal welfare means those social groups who don’t need the welfare still receive it which costs UK state and its taxpayers a lot of money
means tested welfare solves the problem of people abusing a generous welfare system
Tawney’s ‘strategy of equality’ creates a culture of dependency where people avoid looking for work

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