Introduction

Part Two of the book turns to an analysis of social policy developments under Labour from 1997 to early 2010 in the areas of welfare to work, financial support for families with children, childcare services, family-friendly employment and parenting and family support. Each chapter in Part Two identifies: (1) the overarching policy approach, objectives, programmes, target groups and impacts; (2) the evolution of policy developments in response to criticism and change; and (3) revisions of social citizenship and parental rights and responsibilities.

This chapter examines key aspects of welfare reform. Macro-economic and social security policies are highly centralised in the UK, with the devolved Scottish, Northern Ireland and Welsh administrations constrained in respect of independent policy directions. Chapter Four set out the three overarching policy objectives informing Labour's welfare reform agenda: (1) to reduce welfare dependency; (2) to promote equality of employment opportunity; and (3) to reduce child poverty. Welfare to work, tax and benefit reforms were introduced to compel or encourage welfare recipients to take up paid work or back-to-work training, and to provide back-to-work and in-work financial incentives. The agenda to reduce child poverty and ‘invest in children’ emerged from 1998. This agenda led to more comprehensive welfare rights for (deserving) low-income families with children and redistribution within the benefit and tax system towards families with children. However, this agenda was informed by the ‘responsibilisation agenda’, and anti-poverty measures included extending back-to-work requirements for welfare-reliant lone mothers, couple mothers and disabled parents in receipt of disability benefits; and maintenance responsibilities among non-resident parents. Overall, this chapter demonstrates that Labour's reforms contributed to significant increases in employment rates among some groups and a reduction in child poverty. However, in relation to the scale of the problems of poverty, labour market exclusion, employment disadvantage and social inequalities, Labour's approach was limited. Crucially, limited welfare and equal rights in the UK continue to place families, adults and children at risk of poverty and employment disadvantage. This chapter charts the evolution of Labour's welfare to work, tax and benefit reforms and critically assesses the emergent welfare contract and degree of policy effectiveness. The conclusion deliberates the new policy context in the early days of the Conservative-Liberal Democrat Coalition government.