Social Assistance in OECD Countries: Synthesis Report
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This is a repository copy of Social Assistance in OECD Countries: Synthesis Report. White Rose Research Online URL for this paper: https://eprints.whiterose.ac.uk/73427/ Monograph: Eardley, T, Bradshaw, J orcid.org/0000-0001-9395-6754, Ditch, J et al. (1 more author) (1996) Social Assistance in OECD Countries: Synthesis Report. Research Report. Department of Social Security Research Report, No.46 . HMSO , London. Reuse Items deposited in White Rose Research Online are protected by copyright, with all rights reserved unless indicated otherwise. They may be downloaded and/or printed for private study, or other acts as permitted by national copyright laws. The publisher or other rights holders may allow further reproduction and re-use of the full text version. This is indicated by the licence information on the White Rose Research Online record for the item. 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[email protected] https://eprints.whiterose.ac.uk/ Department of Social Security Research Report No. 46 Social Assistance in OECD Countries Volume!: Synthesis Report A study carried out on behalf of the Department of Social Security and the OECD by the Social Policy Research Unit Tony Eardley Jonathan Bradshaw John Ditch Ian Gough Peter Whiteford London: HMSO Crown copyright 1996 Applications for reproduction should be made to HMSO Copyright Unit First published 1996 ISBN 0 11 762407 1 ISSN 0961 569 5 Views expressed in this report are not necessarily those of the DSS or any other government department, the OECD or any member countries of the OECD. .A full list of other publications in this series is shown on page 195 HMSO Standing order service Placin g a standing order with HMSO BOOKS enables a customer to receive future titles in this series automatically as published. 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A special leaflet describing the service in detail may be obtained on request. be 5673. 1142 - Contents Page Preface v Acknowledgements vi List of Tables and Figures x Executive Summary Chapter I Introduction 115 .1 Objectives 15 1.2 Research methods 17 Purchasing power parities 17 Approaches to comparative research 18 L3 Why study social assistance? 20 1.4 The structure of the report Chapter 2 Social Assistance across the OECD: Patterns and Trends 26 2.1 A taxonomy of social assistance 26 2.2 Expenditure on social assistance 32 2.3 Recipients of social assistance 38 Types of assistance benef cicary 41 Changes in assistance populations over time 45 2.4 Conclusion 46 Chapter 3 The Structure and Principles of Social Assistance Schemes 47 3.1 Introduction 47 3.2 Aims and principles 47 3.3 Conditions of eligibility 49 3.4 Inclusion and exclusion 59 Minimum age thresholds 59 Residence and nationality conditions 60 3.5 Conditions of entitlement 61 Benefit tend resource units 65 The treatment of resources 66 3.6 Housing costs 67 3.7 Meeting urgent or exceptional needs 71 3.8 Conclusion 78 Chapter 4 Administration and Delivery of Social Assistance Benefits 80 4.1 Introduction 80 4.2 Centre-local responsibilities 80 4.3 Making a claim and receiving a payment 82 4.4 Procedures for verification of identity 88 4.5 Computerisation of benefit delivery 88 4.6 Fraud prevention and control 88 iii Page 4.7 Recovery of overpayments 92 4.8 Provision for payment of benefit to third parties 92 4.9 The role of social workers 93 4.10 The role of non-governmental organisations 93 4.11 Quality and scrutiny of administration 94 4.12 Conclusion 95 Chapter 5 Benefit Rates, Adequacy- and Take-Up: National Debates 96 5.1 Introduction 96 5.2 The construction of social assistance scales 96 5.3 Debates about poverty and the level of benefits 101 The role of non-governmental organisations and poverty lobbies' 103 Debates about adequacy of assistance payments 104 5.4 Take-up of means-tested benefits 106 5.5 Conclusion 108 Chapter 6 The Level and Structure of Social Assistance Payments 109 6.1 Introduction 109 6.2 Methods 109 Housing costs 112 Local taxes 115 Health costs 115 School and child-care costs 116 6.3 Limitations of the model family approach 116 Purchasing power parities 117 6.4 The results of the income matrix analysis 117 The structure of social assistance 117 Social assistance levels 124 The implied equivalence scale in social assistance 127 6.5 Conclusion 137 Chapter 7 Social Assistance, Work and Incentives 140 7.1 Introduction 140 7.2 Background data 141 7.3 Duration of assistance 143 7.4 Job search requirements 147 7.5 Income tests and related arrangements 153 7.6 Benefit replacement rates 157 7.7 Average effective tax rates and the poverty trap 161 7.8 Conclusion 163 Chapter 8 Diverse Systems, Common Destination? 165 8.1 Introduction 165 8.2 Patterns of social assistance 165 8.3 Debates and policy initiatives 171 8.4 Common pressures and national responses 172 New demands from external forces 172 Pressures from within the policy systems 173 Unemployment and work incentives 174 8.5 Evaluating national assistance regimes 176 8.6 Conclusion 178 References 180 Appendix Model Families Income Matrix 188 iv Preface This study was initially commissioned in October 1993 by the UK Department of Social Security, to inform its understanding of social assistance schemes in the member states of the European Union and a number of other relevant countries. The original proposal was to include in the study the then 12 countries of the European Union, plus Norway and Sweden as likely future members. together with the English-speaking group of developed countries consisting of the USA. Canada. Australia and New Zealand. In the course of initial information gathering, contact was made with the Social Policy Division of the Organisation for Economic Co- operation and Development (OECD). They expressed interest in the research being extended to the six member countries not already covered by the study and after consultations between the two sponsoring bodies, and with the six member governments, a further contract was agreed. Shortly after the research was commissioned it was discovered that Professor Ian Gough of the University of Manchester had received a social science fellowship from the Nuffield Foundation to pursue a similar study, on a smaller scale but including some of the non-EU countries. Once the OECD participation was confirmed it was agreed that it would be mutually beneficial for the two projects to co-operate. The results of the research are presented in two volumes. The second volume presents separate country-by-country descriptions of assistance schemes and their place within social security more widely, with trend data on claimant numbers and expenditure and brief discussions of policy issues current in each country. This volume provides a synthesis of comparative and analytical material organised by themes. Any views expressed are those of the authors and do not necessarily reflect those of participating governments, nor those of either the UK Department of Social Security or the OECD. University of York August 1995 v Acknowledgements We are grateful to the Department of Social Security and the OECD for funding this research, and to the Nuffield Foundation. who supported Ian Gough`s participation in the study. This study is the result of collaborative effort going well beyond the research team itself_ It is primarily based on information provided by two networks of national informants working in their own countries. The government officials listed below either completed questionnaires themselves or acted as co-ordinators of information collected from different sections of the administration. Many of them undertook this task with energy and enthusiasm, for which we are most grateful. The academic experts, and their colleagues, provided information. commentary and access to a wealth of research studies on social assistance in their own countries. They also commented on our drafts and engaged with us in a continuous process of dialogue to improve and refine our understanding of national systems and policies. It has been an immensely valuable process, and while the responsibility for any errors or misinterpretations remains with the authors, the study would not have been possible without the knowledge, enthusiasm and hard work that the national informants contributed, for only modest rewards. Australia Ms Lynelle Briggs Ms Fiona Smart Social Policy Division Department of Social Security Austria Mr Hans Steiner Ministry of Labour and Social Affairs Dr Walter Pfeil Institute for Social and Labour Law University of Salzburg Belgium Mr 3. Donis International Relations Ministry of Social Security Mark Andries Professor Bea Cantillon Centre for Social Policy University of Antwerp Canada Mr Gilles Seguin Social Policy Information and Analysis Directorate Human Resources Development Canada Professor Patricia Evans School of Social Work York University Ontario vi Denmark Mr Per Hansen Ministry of Social Affairs Dr Peter Abrahamson Department of Economics and Planning Roskilde University Finland Ms Use Julkunen Professor Hannu Uusitalo National Research and Development Centre for Welfare and Health Helsinki France Mr Antoine Math Caisse Nationale des Allocations Familiales Dr.