UK government's radical social care reforms could cut benefits for many
On Wednesday, the British government is anticipated to announce significant changes in the social care system that could lead to a potential loss of benefits by citizens dependent on state support. The move is an attempt by the government to counteract those who live at taxpayers' expense.
This unprecedented change in regulations will be presented in the British parliament by the Chancellor of the Exchequer, Jeremy Hunt. The new guidelines will apply to unemployed and occupationally inactive individuals: those who neither work nor study, yet receive various benefits.
As reported by the British statistical office, as of September 2023, unemployment in the Isles stood at 4.2%, equating to roughly 1.4 million unemployed citizens. Concurrently, there are 8.73 million people who are occupationally inactive, removed from the labor market, of working age (16-64 years), and living on taxpayer money.
Of this figure, 2.6 million are unable to work due to long-term poor health conditions, the highest figure ever recorded in the country's history.
Dramatic Policy Changes Proposed by the British Government
The government's "back to work" Plan is an effort to disrupt the social pact that has been in place for decades. Chancellor Hunt argues strongly that it's unacceptable for workers to support healthy individuals of working age, who do not deem it necessary to work because they receive ample social support from the government.
"Individuals who receive taxpayer-funded benefits without making an effort to secure employment will be ejected from the system within six months." informed Chancellor Hunt.
Refusal to accept a job offer from the job center that aligns with an individual's qualifications will lead to a discontinuation of all social benefits and social privileges. This includes free dental care, free medications, discounts on public transit, and additional subsidies covering heating or energy costs.
This policy will not affect individuals who due to severe illness or disability are unable to work, or those providing childcare.
The Heavy Load: Is It Too Much?
The Conservatives, from which Chancellor Hunt hails, intend to reintegrate those capable of work back into the labor market after experiencing significant staff shortages post-Brexit. Governmental sources indicate that there are currently around one million job vacancies to be filled.
The Conservatives argue that the state budget is overly strained by social expenditures, which skyrocketed in the Isles during the COVID-19 pandemic as citizens received extensive government support.
While the "back to work" plan primarily focuses on sanctions, the government also plans to spend £2.5 billion over the coming years to activate those who are unemployed. However, these promises have failed to placify labor market experts.
Tony Wilson, director of the Institute for Employment Studies, argues that while the government's increased employment support funding is a welcome move, there's a risk that the Conservatives' rhetoric could discourage potential workers.
The impact of these changes on the Polish community living in the Isles is yet to be determined, according to Barbara Mirowska, editor of Polish web portal polishexpress.co.uk.
“The general perception is that Poles primarily migrate to the Isles to work. They are widely known in the UK for their diligence and heavy workload, therefore, we are not viewed as a strain on the social system,” our correspondent commented.
Anticipated Law Delayed Indefinitely
The UK is not alone in facing this issue; Poland is also grappling with similar problems. According to Paula Kukołowicz, team strategy leader at the Polish Institute of Economics, nearly 4 million occupationally inactive people of working age (18-59/64 years) reside in Poland. Most of these individuals are not actively seeking employment.
Previously, these individuals were not the focus of job center activation efforts, primarily because the centers' actions were geared towards registered unemployed people. These inactive individuals did not qualify for benefits from job centers, recalls Kukołowicz.
There was hope for a significant change with the proposed enactment of the Professional Activity Act. However, for unresolved reasons, this has been delayed by the Law and Justice government until 2024.
Monika Fedorczuk, director of the Warsaw Municipal Employment Office and an expert in employment market dynamics, outlines that the proposed law states job centers will also activate occupationally inactive individuals. However, the law does not provide specific plans on how officials would reach out to or support these individuals.
Despite these shortcomings, in Fedorczuk's opinion, the law would represent a step in the right direction, given that the Polish labor market is also experiencing significant staff shortages.
No New Regulations Leads to Persistent Absurdities
As it stands, any potential restrictions related to the loss of support or right to free health insurance in Poland apply to registered unemployed individuals only.
Refusing a job offer without a valid reason results in being removed from the employment office records for 120 days (for the first refusal) and 180 days (for second-time refusals).
In 2022, the Warsaw employment office struck off 249 individuals from the unemployed register due to refusal of job offers or other forms of support such as internships. Nationwide, this figure stands at 9,991 people.
The proposed law would have also brought pivotal changes for unemployed individuals by separating employment status from the right to health insurance.
"Approximately 30% of people are registered at job centers not because they want to re-enter the workforce, but because they need free insurance. This presents a significant challenge and an added duty for job centers due to the constant need to assess job readiness and willingness." explains Monika Fedorczuk.
A major policy change planned under the new law concerns the choice of job center for unemployed individuals. Currently, many people from small towns and villages move to cities for study or work. If they lose their jobs, they must return to their home towns – where they are registered – and wait for a job offer. This new law proposed to eradicate this problem by giving unemployed individuals a choice of job centers, but the proposition remains stalled.
