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two - Central government policy: from ‘perverse incentives’ to social exclusion

Published online by Cambridge University Press:  20 January 2022

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Summary

The present Labour government appears committed to tackling the difficulties experienced by young people living in independent housing, although it has not clearly identified which of the explanations of problems discussed in the first chapter it considers to be most significant. An examination of its approach reveals both similarities and differences with the policies adopted by previous Conservative administrations. While there has been a continuing emphasis on the responsibility of the individual to take work and training opportunities, a greater willingness to support young people in independent tenancies marks a major departure from the agenda of the Conservatives.

The Conservative legacy: removing ‘perverse incentives’

The Conservative governments of 1979-97 had a clear objective of discouraging young people from moving into their own property before they were financially independent. This was part of a broader social policy agenda: Margaret Thatcher and the ‘New Right’ are widely assumed to have destroyed a post-war crossparty consensus over the role that the welfare state should play (Pierson, 1998, p 18). The Thatcher governments argued that the state had become too protective, reducing the incentive for individuals to provide for themselves. Their approach drew on anticollectivist ideas that public provision of benefits and services creates dependency and irresponsibility, rather than initiative, selfreliance and other desirable values (George and Wilding, 1985, pp 40-1). In addition to a greater emphasis on the responsibility of the individual to provide for themselves, the New Right also envisaged a greater role for the family: Harris (1988, p 502) notes that cuts to the benefits available to young people in the 1980s were linked to demands that their families shoulder more of the financial burden.

On the specific issue of young people living independently, the Conservatives sought to eliminate the perceived incentives to leave the family home needlessly and become financially dependent on the state. In particular, ministers argued that the homelessness legislation provided a reason for young women to have illegitimate children and so place themselves in a priority need category. Secretary of State for Wales John Redwood complained that there was a widespread belief among the young that “the illegitimate child is the passport to a council flat and benefit income” (The Independent, 14 August 1995, quoted in Jones and Novak, 1999, p 13).

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Chapter
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Making It Work
The Keys to Success for Young People Living Independently
, pp. 11 - 26
Publisher: Bristol University Press
Print publication year: 2004

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