Welfare Markets and Personal Risk Management in England and Scotland

Lead Research Organisation: University of Edinburgh
Department Name: Sch of Social and Political Science

Abstract

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Description One of the most interesting findings of the overview of the public/private provision was the discrepancy between the need to rely on market provision and the lack of market transparency. Stage A of the project demonstrated how low public entitlements are across policy areas (pensions, sickness, unemployment, long-term care and also support for the cost of higher education), and how significant non-state provision is for middle income households. However, neither systematic public information nor academic studies exist that would allow a comprehensive assessment of the quality of non-state benefits by types of employer or sector. The situation is somewhat better with regard to pensions, but here, too, specific information is rare. Welfare markets are opaque and householders make decisions without access to comparative information.



The secondary analysis of large scale survey data showed that private insurance markets play only a small part in the security packages of the English and Scottish population. This has not increased over the past 15 years. In particular, long term care insurance is held by less than one per cent of even our core group of better-off families, who were more likely to hold private insurances than other households. With the exception of the recently discredited MPPI, and life insurances, holding private insurances against income loss due to unemployment or sickness largely remains a niche behaviour, often correlated with high occupational status and high income. Survey data made available by the Association of British Insurers suggest that there is a strong reliance on various other private sources of income protection, such as the ability to curtail expenditure, to draw upon property wealth or turn to family and friends. A search of publicly available survey data also revealed gaps in the information available in terms of how parents might be saving specifically for children's education and in terms of occupational income protection (sickness and redundancy).



Public provision was almost absent in the perception and actual risk management strategies of middle income households. In a range of cases, most notably regarding pensions, householders did not expect any public benefits. Nevertheless, many interviewees felt protected because of their large public or private employers. On the whole, couples relied on occupational benefits more than on any other form of income protection.

Regarding pensions, unemployment and sickness, 'monos' relied on their employer exclusively; and those with confidence tended to be older and had higher incomes. 'Duos' combined occupational provision with one other source of income protection: insurance, savings, property or work. 'Multis' (generally with heterogeneous employment careers) relied on a patchwork of protection.

Most couples felt not much affected by the financial crisis. Among those materially affected, most felt capable of adjusting their circumstances. Only very few suffered a loss but did not have the capacity to respond. Out of the five areas the need to pay for children at higher education was singled out as the most relevant area of income management by two thirds of all respondents. Interestingly, there were no systematic differences between Scotland and England in this or other areas.
Exploitation Route For policy debates on the role of private insurance, as well as occupational welfare in the areas of sickness and redundancy pay.
Sectors Government

Democracy and Justice
URL http://www.socialpolicy.ed.ac.uk/research_projects/welfare_markets_and_personal_risk_management
 
Description How do working families survive when breadwinners lose their jobs? : an international comparison of income protection in case of unemployment 
Form Of Engagement Activity A talk or presentation
Part Of Official Scheme? No
Geographic Reach International
Primary Audience Participants in your research and patient groups
Results and Impact This was an invited lecture hosted by Arizona State University and supported by the Linda Haskell Memorial fund. The aim was to contribute to an international dialogue on income protection in case of unemployment.

contact with academics
Year(s) Of Engagement Activity 2012
 
Description Income protection during unemployment : what do better paid people do? 
Form Of Engagement Activity Participation in an activity, workshop or similar
Part Of Official Scheme? No
Geographic Reach International
Primary Audience Other academic audiences (collaborators, peers etc.)
Results and Impact Seminar presentation at the University of Southern Denmark, Odense.

indeterminate
Year(s) Of Engagement Activity 2013
 
Description Income protection during unemployment : what do better paid people do? 
Form Of Engagement Activity A talk or presentation
Part Of Official Scheme? No
Geographic Reach International
Primary Audience Other academic audiences (collaborators, peers etc.)
Results and Impact Presented at Norwegian Social Research Institute, NOVA, Oslo

sharing information
Year(s) Of Engagement Activity 2012
 
Description Public and private forms of unemployment protection and social stratification in England and Scotland 
Form Of Engagement Activity Participation in an activity, workshop or similar
Part Of Official Scheme? No
Geographic Reach National
Primary Audience Other academic audiences (collaborators, peers etc.)
Results and Impact Social Stratification Research Seminar 2011. Annual quantitative research seminar on social stratification research. A project paper was presented.

indeterminate
Year(s) Of Engagement Activity 2013
 
Description Public and private forms of unemployment protection and social stratification in England and Scotland 
Form Of Engagement Activity Participation in an activity, workshop or similar
Part Of Official Scheme? No
Geographic Reach International
Primary Audience Other academic audiences (collaborators, peers etc.)
Results and Impact International Sociological Association International Symposium on Risk, Social Stratification, and Changes in Institutions. An internationally organised symposium addressing related issues to the research project. A presentation on the project was delivered.

conference talk
Year(s) Of Engagement Activity 2013