At the Independent R&B Discussion Group on July 8, 2024, we discussed recent developments in social security also the new ministers and where they might direct future policy. The meeting was led by Malcolm Gardner, with notable contributions from several participants, including Alex Clegg of the Resolution Foundation, who presented a comprehensive report on social security trends and challenges.
Key Discussion Points
1. Upcoming CIPFA Conference: Malcolm Gardner reminded attendees about the CIPFA conference in Manchester on 10 & 11 July, inviting members and their Chief Officers to visit collaborative stand with Ascendant and Inbest.ai at stand 7.
2. Social Security Report by Alex Clegg: Alex Clegg presented a detailed analysis of social security trends over the past 14 years, the research was funded by the Nuffield Foundation. Key findings included:
- Expenditure Trends: Social security spending has slightly increased since 2007, driven by state pension and health-related benefits.
- Major Changes:
- Introduction of new benefits like Universal Credit.
- Deviation from the principle of annual benefit uprating in line with inflation.
- Changes in claimant interaction due to Universal Credit, extending conditionality rules.
- Devolution and localization of benefits, impacting local authorities significantly.
3. Impact on Demographics:
- Working Age Households: Significant income decreases due to policy changes.
- Pension Age Households: Generally stable incomes with some increases due to policies like the triple lock on pensions.
- Future Challenges: The new government faces rising social security costs, particularly in state pensions and health-related benefits, necessitating careful policy planning.
4. Housing and Local Authority Pressures:
- Local authorities are experiencing increased spending on housing benefit subsidies, especially for temporary and supported accommodations.
- There is widespread concern among local authorities about taking on unfunded mandates or those without quick returns on investment. This would be challenging for finding solutions that both reduced expenditure and supported vulnerable households.
5. Introduction of New Government Ministers:
- Liz Kendall, Department for Work and Pensions: Appointed with a background in social care and extensive policy experience.
- Angela Rayner, Department for Levelling Up, Housing and Communities: Deputy leader focused on levelling up and early years education although Levelling Up is to be dropped from the department’s title.
- Shabana Mahmud Justice Department: Appointed with experience of advocacy in various social issues.
- Rachel Reeves: Chancellor of the Exchequer, known for her tough stance on welfare and background in economics and accountancy.
6. Strategic and Political Implications:
- Discussion on the sustainability and effectiveness of proposed reforms and spending cuts.
- Concerns about the long-term impact of these policies on social security and local government finances.
- Emphasis on the need for holistic approaches to address rising health-related benefit costs.
7. Closing Remarks: Malcolm Gardner concluded the meeting by thanking participants, with special recognition for Alex Clegg’s report presentation, which provided a detailed overview of the current social security landscape and the challenges ahead.
The meeting underscored the complexity of tax and social security issues and the critical role of government policies in shaping future outcomes for various demographics, particularly in the context of new ministerial appointments and fiscal strategies. The recording can be accessed from https://bit.ly/VNR240708.
Slides Tables and Reports
Please note that the handout contains additional slides covering other items of interest in the news and job adverts, which are provided in partnership with Business Smart (https://www.businesssmartsolutions.co.uk/).