Social benefits: universal or targeted?

As anyone reading this blog – or indeed anyone living in Ireland – knows, there is now a major national debate here on whether tuition fees for higher education should be reintroduced. Leaving aside the specific issue of university fees for a moment, there is a wider issue that this debate touches upon, and which perhaps can do with a little analysis: should social benefits be ‘universal’ (i.e. made available to everyone) or should they be ‘targeted’ (with the resources directed specifically at those most in need of them)?

The idea of universal benefits is a product of the development of the welfare state in the period after the Second World War. It was set out in Britain in the Beveridge Report, commissioned during the War by the British government and published in 1942 (Social Insurance and Allied Services). The report identified what it called the ‘Five Giants’ that stood in the way of social progress – Want, Disease, Ignorance, Squalor and Idleness – and recommended a system of universal social insurance that would produce universal entitlements to benefits and service, without means testing. To a greater or lesser extent, the welfare state that emerged after the War in several countries was based on the Beveridge formula.

Beveridge’s ‘Five Giants’ give a clear indication as to the particular context in which universal benefits arose: a society that had developed the knowledge and the means to achieve health and prosperity but had not yet developed the social structures to do so. The Victorian society set out in Dickens’ novels was still there and was not being pushed aside by the political, scientific and social insights that had been acquired. The universal benefits principle of the welfare state would achieve this in one sweep. In fact, it would be impossible to deny that the welfare state did exactly that, at least to a very significant extent, and it is doubtful whether our modern more egalitarian society could have been created without it.

The major advantage of universal benefits is that they are easy to administer and can be efficiently delivered. The major disadvantage is that they are very expensive, because they are delivered to those who do not need them as much as to those who do.

As society becomes more prosperous and fairer, universal benefits become much more questionable. The major priorities of social policy then change: they should no longer be directed towards transforming society as a whole, but rather to target those pockets in society which have still not caught up. If universal benefits are used to do this, it means providing very substantial resources to the 80 per cent who do not need them in order to assist the 20 per cent who do. The result of that in turn is that the taxpayer has to find very large sums of money in order to achieve, in material terms, quite modest objectives. Therefore, for reasons of affordability, the resources that reach the needy are often totally inadequate.

It is, therefore, perhaps now time to discuss whether universal benefits are an efficient way of achieving further progress. Indeed, it could be asked whether they are even a fair way of doing it, since people who are less well off also contribute to the cost of making contributions to those who are wealthy. So as we discuss higher education fees, we may also want to raise the broader issues and principles of social policy.

For all that, I might add that I do believe that universal benefits in some contexts are still right. I would strongly favour free secondary education, for example. But there are other areas where they have become of doubtful value and merit.

Explore posts in the same categories: economy, welfare

Tags: , , , , , ,

You can comment below, or link to this permanent URL from your own site.

3 Comments on “Social benefits: universal or targeted?”

  1. Ultan Says:

    I think it depends on each case and whether you consider the recipient of the benefit as a “citizen” or a “consumer”. It’s clear that proponents can easily switch between concepts to suit their arguments. Also, verify often categories of universal or social are as much to do with the exigencies of operating the system more than anything else.

    Certainly, if we were to treat everyone as a consumer, then we could look to the likes of Hammer and Champy and regard everyone as an individual – as “this” customer as opposed to “the” customer, but even then adopting a scalable distribution model would be tough.

    Perhaps we could look to a more progressive model. Say all the university heads get together into a Celebrity Big Brother house and we can vote for funding their respective institutions by text message? Throw a few colourful celebrities in there too – just in case we nod off – so along with the gaffers from TCD, UCD, DCU, etc, we could have:

    – Father Neil Horan
    – Vincent Browne
    – Sinead O’Connor
    – Danny Morrison, etc

  2. universitydiary Says:

    Oh dear, Ultan – those suggested celebrities betray your age… 🙂

  3. Ultan Says:

    Ah, I can see it now

    Dey 27 in da Big Brudda Hoose (terrible attempt at Geordie phonetics):

    “And today’s task for the university heads is to convince a skeptical public to pay for courses they don’t even want…

    Nee way….:)

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: