Quote
“Jews
know this in their bones. Our community could not exist for a day without its volunteers.
They are the lifeblood of our organizations, whether they involve welfare,
youth, education, care of the sick and elderly, or even protection against violence
and abuse.” Lord Jonathan Sacks, former Chief Rabbi
News
Chancellor George Osborne proposed some radical changes to
UK pension arrangements in this week’s Budget, offering more individual choice
to new retirees on how to manage their pension pot. Although debate has continued since then over
the impact this will have on the state’s finances, two things stand out.
Firstly, the yawning gap of unfunded pension liabilities – £3.8
trillion (over 3 times the national debt) in the basic state pension alone.
This is the difference between what the state has promised to pay to those
retired or in work now, and the anticipated revenues to cover it. Secondly, more older people vote than young
ones (70% of over 65s, 39% of 18-24 year olds) so governments are loath to squeeze
pensions; Mr Osborne knows very well that the pensioner vote can determine an
election.
Aside from pensions, healthcare and other costs of caring for
older people will also spiral with an ageing population, which means the
welfare system in its present form is completely unsustainable.
The welfare state is less than 70 years old, so the concept
that the government is ultimately responsible for welfare provision, through financial
payments, is a relatively new one. It is
families and friends who in the past and even now provide the lion’s share of welfare;
unpaid carers gave time worth £119 billion in 2011, larger than the whole NHS
budget.
Thus welfare is not just an economic issue, but a relational
one too. As state financial provision
dwindles in the coming decades, it’s imperative to consider how to re-empower
families and community organisations as society’s primary source of welfare, so
the state only has to step in as provider of last resort. This won’t happen overnight, but government
could pave the way now through housing policy, devolving welfare decisions, and
providing tax incentives for colocation of relatives.
When faced with the prospect of dwindling financial pensions,
let’s rediscover how relationships are the currency of welfare.
Read on...
Theos recently published a collection of papers on the future
of welfare, which explores some of the moral issues involved. The introduction is a good overview to the
document, which can be downloaded here.
Walk the talk
In what currency are you planning for your retirement? Only financially, or relationally also?
The last word
From the Bible, Isaish 46, verse 4: “Even to your old age
and gray hairs I am he, I am he who will sustain you.”
