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Paternalistic Workfare in Australia and the UK

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Paternalistic Workfare in Australia and the UK Examining changes to welfare policy Paternalistic workfare in Australia and the UK Kemran Mestan A thesis submitted in fulfilment of the requirements of the degree of Doctor of Philosophy Swinburne University of Technology 2012 Abstract Over the last two decades across most developed nations, governments have made substantial changes to welfare policy. Although welfare policy refers to many initiatives by governments to protect and promote the well-being of their populace, those whose well-being depends most on such initiatives are the most vulnerable to policy changes. This thesis examines changes in welfare policy targeted at one such group: people of working age receiving welfare payments. The most prominent change in respect of this group is placing work-related conditions on the receipt of welfare payments, which has been described as ‘workfare’. There are various objectives of workfare, with diverse means to achieve them. A particular objective is to promote people’s interests, with compulsion applied as a means to do so. This could be described as a paternalistic characteristic of workfare. This thesis examines and assesses paternalistic workfare in two ways. First it examines empirically changes in welfare policy in Australia and the UK between 1996 and 2011, through detailed analysis of policy documents supplemented by interviews with policy makers. This investigation found that welfare paternalism is a significant characteristic of workfare policies in both countries. Second, it assesses the legitimacy of paternalistic workfare by considering the likelihood that it promotes the well-being of those subject to the policies, as well as if it is fair. Conditions conducive to promoting well-being were identified, and principles of legitimate paternalistic workfare induced, which were then applied to the two cases. Particularly important conditions relate to the labour market, which is shown to be deficient in both countries in regard to the quantity and quality of jobs available. The central argument of this thesis is that paternalistic workfare in Australia and the UK has been illegitimate. Whereas much social policy research is quite technical, focusing on policy outcomes, this research investigates more fundamental issues. It analyses the nature and moral implications of workfare. To do this a policy-philosophical approach was developed where, in addition to analysing policy instruments and outcomes, normative implications were considered. The ultimate aim of this investigation is to promote fair welfare policies which advance the well-being of disadvantaged people in society. 1 Table of Contents ABSTRACT .......................................................................................................................... 1 LIST OF DIAGRAMS, TABLES, GRAPHS AND BOX ................................................. 4 ACKNOWLEDGEMENTS ................................................................................................ 5 STUDENT DECLARATION.............................................................................................. 6 ACRONYMS ........................................................................................................................ 7 INTRODUCTION ............................................................................................................... 8 A POLICY-PHILOSOPHICAL ANALYSIS APPROACH ......................................................... 10 OUTLINE OF THESIS ...................................................................................................... 11 PART A: BACKGROUND AND DESIGN ..................................................................... 13 CHAPTER 1: THE EMERGENCE OF WORKFARE ................................................. 13 INTRODUCTION............................................................................................................. 13 ANTECEDENTS OF WORKFARE ...................................................................................... 13 WELFARE OBLIGATIONS AND WORKFARE ..................................................................... 18 BORN IN THE USA ....................................................................................................... 20 DÉJÀ VU? ..................................................................................................................... 25 THE DIFFUSION OF US WORKFARE ............................................................................... 29 CONCLUSION: EMERGENCE OF WORKFARE ................................................................... 37 CHAPTER 2: RESEARCH DESIGN .............................................................................. 38 INTRODUCTION............................................................................................................. 38 RESEARCH PARADIGM .................................................................................................. 38 DESIGN FRAMEWORK: DUAL CASE COMPARATIVE ANALYSIS ....................................... 41 METHODOLOGY: QUALITATIVE INVESTIGATION AND PHILOSOPHICAL INTERROGATION ........................................................................................................... 48 METHODS ..................................................................................................................... 50 CONCLUSION: RESEARCH DESIGN ................................................................................ 60 PART B: IDENTIFYING PATERNALISTIC WORKFARE IN AUSTRALIA AND THE UK ............................................................................................ 61 CHAPTER 3: OBJECTIVE TO HELP WORKFARE SUBJECTS ............................. 61 INTRODUCTION............................................................................................................. 61 CONCEPTUAL FRAMEWORK OF WORKFARE OBJECTIVES ............................................... 62 HELPING WORKFARE SUBJECTS IS AN IMPORTANT JUSTIFICATION ................................ 64 PROMINENT JUSTIFICATIONS RELATED TO HELPING WORKFARE SUBJECTS ................... 67 CONCLUSION: HELPING WORKFARE SUBJECTS ............................................................. 92 CHAPTER 4: OBJECTIVE TO BENEFIT SOCIETY ................................................. 94 INTRODUCTION............................................................................................................. 94 RECIPROCITY OBJECTIVE .............................................................................................. 94 ECONOMIC AND FISCAL OBJECTIVES........................................................................... 105 CONCLUSION: ALL PROMINENT OBJECTIVES OF WORKFARE ....................................... 121 CHAPTER 5: THE MEANS TO ACHIEVING THE POLICY OBJECTIVES .................................................................................................................. 123 2 INTRODUCTION........................................................................................................... 123 CONCEPTUAL FRAMEWORK OF WORKFARE POLICY MEANS ........................................ 123 PRIMARY MEANS: COMPULSION ................................................................................. 129 A SECONDARY MEANS: HUMAN CAPITAL DEVELOPMENT ........................................... 139 A TERTIARY MEANS: ENHANCING THE ATTRACTION OF WORK ................................... 145 A MINOR MEANS: DIRECT GOVERNMENT JOB CREATION............................................. 150 CONCLUSION: THE MEANS TO ACHIEVING THE POLICY OBJECTIVES ........................... 151 CHAPTER 6: SIGNIFICANCE OF PATERNALISTIC CHARACTERISTIC OF WORKFARE ....................................................................... 154 INTRODUCTION........................................................................................................... 154 GOVERNMENT DISCOURSE DISCLOSING CONJUNCTION OF COMPULSION AND BENEVOLENCE ............................................................................................................ 156 CONFRONTING POLICY MAKERS WITH THE TERM ‘PATERNALISM’ .............................. 158 DISTINGUISHING THE NATURE OF AUSTRALIAN AND UK PATERNALISTIC WORKFARE ................................................................................................................. 161 SUMMARY OF DISTINGUISHING THE NATURE OF AUSTRALIAN AND UK PATERNALISTIC WORKFARE ........................................................................................ 172 THE VARIETIES OF COMPULSION TO HELP WORKFARE SUBJECTS ................................ 173 PATERNALISTIC POLICY TRANSFER BETWEEN AUSTRALIA AND THE UK .................... 176 CONCLUSION: PATERNALISM IS A SIGNIFICANT CHARACTERISTIC OF WORKFARE ................................................................................................................. 177 PART C: THE LEGITIMACY OF PATERNALISTIC WORKFARE ..................... 178 CHAPTER 7: IMPLICATIONS FOR WELL-BEING AND FAIRNESS ................. 178 INTRODUCTION........................................................................................................... 178 PROBING THE EMPIRICAL EVIDENCE ABOUT THE EFFICACY OF WORKFARE ................. 180 IMPACTS OF WORKFARE ON AUTONOMY ..................................................................... 186 SELECTIVE PATERNALISM AND STIGMA ...................................................................... 192 DISPARATE IMPACTS .................................................................................................. 204 CONCLUSION:
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