Latest news with #ProBonoEconomics
The Guardian
2 days ago
- Health
- The Guardian
Why Labour should target happiness alongside economic growth
Every parent who battled their way through home schooling during the long months of lockdown, and every vulnerable person forced to shield themselves away, can have had little doubt that the Covid pandemic was an unhappy time. But new research by non-profit consultancy Pro Bono Economics (PBE), suggests that the nation's wellbeing has never fully recovered from the plunge it took in mid-2020. Happiness – or wellbeing, or life satisfaction – seems a slippery concept to measure; but economists have been studying and tracking how the public are feeling about their lives for decades. In the UK, the Office for National Statistics (ONS) has done this since 2011 by asking four questions, including, 'Overall, how satisfied are you with your life?' and, 'Overall, how anxious did you feel yesterday?' As the first lockdown took hold, the anxiety measure spiked, not surprisingly, while the other three, which track respondents' satisfaction, happiness and sense of purpose, all had marked declines. Given the shadow the pandemic cast over so many people's lives, it feels intuitively right that on none of these four metrics has wellbeing in the UK returned to the pre-Covid equilibrium. Just as wellbeing might (wrongly) seem unmeasurable, it is also tempting to think that it is not something policy can target directly. Perhaps a bleak mood just settled on us all as we watched those grim Covid press conferences ('Next slide, please') and hasn't quite lifted? Yet the economics of wellbeing, pioneered by academics including Richard Layard at the LSE and the former monetary policy committee member Danny Blanchflower, allows us to pinpoint some of the causes of this malaise, instead of dismissing it as some kind of national vibe shift. As the PBE analysis makes clear, these causes include the persistence of poor physical health, poor mental health, and loneliness. Government policy is already firmly pointed at tackling the shortcomings in the NHS that seem to have contributed to the public's ongoing health struggles. The state of the health service came up consistently in last year's general election campaign, and the Treasury is concerned about the impact of continued high rates of economic inactivity on the labour market. Mental health is relatively high on Labour's agenda, too, with promises to install more mental health professionals in schools, for example. Tackling loneliness is a more complex proposition in policy terms, however, with no single lever to pull. Plans in Rachel Reeves's spending review to invest in neighbourhood-level projects to improve 'community cohesion, regeneration and improving the public realm,' may help here, albeit on a relatively small scale. Recent work by the Independent Commission on Neighbourhoods has underlined the importance of institutions such as parks, community centres and libraries, for fostering all-important human connections. If the Department for Work and Pensions gets its planned overhaul of back-to-work support right, meanwhile, it should help people to overcome barriers to finding a job, as the best local schemes already do – and these will often be barriers to wellbeing, too. I vividly remember the beaming faces of successful clients of Manchester's Working Well scheme, whose Bolton outpost I visited two years ago, who had been helped to tackle huge challenges such as anxiety and find a place for themselves back out in the world. Projects like these have a hard-nosed economic objective, of course; but there should be no shame in saying they are also aiming to make people happier and more satisfied with their lives. PBE's chief economist, Jon Franklin, also points to social prescribing: an approach that can involve health professionals dispatching patients to clubs or activities, that might then help them to form bonds with others. There is a powerful case study in the PBE research that underlines the fact that good policy can improve wellbeing, despite it perhaps seeming to lie outside the realm of things politicians can affect. The research shows that private renters are especially likely to be in what PBE defines as 'wellbeing poverty'- scoring 4 points or less on the life satisfaction question. One underlying factor they tease out is the anxiety-inducing insecurity that tenants experience. Recent legislation in Scotland that improved security of tenure, has already started to close the wellbeing gap between private renters and everyone else, PBE finds. The Renters' Rights Bill currently passing through parliament south of the border should have a similar impact: though it won't tackle another major cause of discontent for this group – unaffordable rents. There is nothing to prevent officials weighing up the wellbeing impact of proposed policies – indeed, there is Treasury guidance from 2018 that suggests it is one factor that should be taken into account. But there is no mention of repairing voters' life satisfaction, or happiness, in Labour's missions, or the Plan for Change. That's understandable, when the government is operating in straitened fiscal circumstances, and urgently needs to rekindle economic growth. And secure jobs and rising real wages are undoubtedly good for wellbeing. But a more direct focus on making the UK a happier place might help to improve decision-making. Franklin and his colleagues argue the data is now clear and consistent enough to make that possible. Instead, there is endless polling and focusing grouping of specific policies, discussion of which can become oddly detached from what they are likely to achieve. Labour has struggled to articulate its purpose to the public, and its number one mission, economic growth, is worthwhile but abstract (and judging by the past two months' data, currently absent). Perhaps alongside the spreadsheets, it's time to try a little happiness.
The Independent
26-01-2025
- Business
- The Independent
Benefits of welfare outweigh the cost, Labour warned ahead of cuts
Labour has been warned against any planned changes to the disability benefits system that would make them harder to access, as a new report arguing the economic value of disability benefits for those in need far outweighs the public cost. The government has not yet announced its plans for health-related benefits, but has made clear that spending cuts are likely. Prime minister Keir Starmer has said that Labour would be 'ruthless' in cutting benefits if needed to balance government spending, with more details set to come in the spring. But stripping back the welfare system to cut costs 'misses the bigger picture,' the report from Pro Bono Economics and anti-poverty Z2K has found. Their analysis finds that the economic value of disability benefits is not understood by ministers, urging them to reconsider any planned cuts. Changes to the work capability assessment are understood to be central to government plans, with the Treasury committing to match a £1.3bn saving plan made by the previous Conservative government, which adds up to £3bn overall. Under those plans, an estimated 450,000 fewer people would have qualifed for health-related benefits, although Labour has said it will re-consult on the changes. Ministers have said changes to the current welfare system are necessary, pointing out the spiralling number of people claiming health-related benefits. There are now 3.7 million people of working age receiving them – 1.2 million more than in February 2020. A consultation launched by the Conservatives in June put forward proposals such as changing the eligibility criteria for work capability assessments, redesigning the PIP assessment, and replacing certain cash payments with vouchers. Labour has said it will put forward its own proposals, but has not ruled out any of these measures. However, the new report argues that any of these measures would be detrimental, finding that the economic value of ensuring disability benefits for those who need them far outweighs the cost to the government of providing them. This is because there is a monetary value attached to improving wellbeing, as set out in Treasury guidance, worth around £12,300 annually per person. With around 3.5 million claimants currently receiving health-related support, this translates to a potential £42 billion in annual economic benefits. This would far exceed the £28 billion cost to the exchequer in delivering these benefits, the report finds. Matt Whittaker, CEO at Pro Bono Economics, said: 'Disability benefits provide crucial financial support for millions of people, helping to offset the extra living costs that many disabled people face in their day-to-day lives. But we now know that they do so much more: boosting the mental wellbeing and life satisfaction of recipients to a level well beyond the cash cost of delivery. 'Reforms to simplify the claims process would make this support even more effective, by improving the experience for existing claimants and removing barriers for many more who could benefit.' The authors have urged the government to reconsider any planned changes to disability benefits which look to make 'short-term' savings. Their report argues that the benefits system already has too many barriers preventing claimants from getting the support they need. Any changes should make benefits more accessible, they add, rather than less. Ayla Ozmen, Director of Policy and Campaigns at Z2K, said: 'These findings show that the narrow focus on the rising cost of disability benefitsmisses the bigger picture. The report reveals that disability benefits actually provide a boost to the economy: spending on disability benefits should be seen not as a drain on public finances but as an investment in economic growth. 'Instead of focusing on how to make short-term savings by reducing financial support for disabled people, the government needs to recognise the wider economic gains of disability benefits and instead concentrate on ensuring support is available to everyone who needs it.' He adds: 'Removing or reducing hundreds of pounds of vital financial support for disabled people would have a devastating effect. Already over 88% of low-income households on disability benefits can't afford the basics, including food, energy costs, prescriptions and transport to medical appointments. Further cuts will inevitably push people deeper into poverty and leave people in worse health.' A DWP spokesperson said: 'We have been clear that the current benefits system needs reform so it is fairer on the taxpayer and people get the support they need to move into work. 'Building on our Get Britain Working White Paper, we will bring forward proposals for reforming the health and disability benefits system in the Spring. This will be part of a proper plan to help disabled people who can work to secure employment while ensuring support is provided for those who need it, with a commitment to put the views and voices of disabled people at the heart of any policy changes that directly affect them.'
Yahoo
26-01-2025
- Business
- Yahoo
Benefits of welfare outweigh the cost, Labour warned ahead of cuts
Labour has been warned against any planned changes to the disability benefits system that would make them harder to access, as a new report arguing the economic value of disability benefits for those in need far outweighs the public cost. The government has not yet announced its plans for health-related benefits, but has made clear that spending cuts are likely. Prime minister Keir Starmer has said that Labour would be 'ruthless' in cutting benefits if needed to balance government spending, with more details set to come in the spring. But stripping back the welfare system to cut costs 'misses the bigger picture,' the report from Pro Bono Economics and anti-poverty Z2K has found. Their analysis finds that the economic value of disability benefits is not understood by ministers, urging them to reconsider any planned cuts. Changes to the work capability assessment are understood to be central to government plans, with the Treasury committing to match a £1.3bn saving plan made by the previous Conservative government, which adds up to £3bn overall. Under those plans, an estimated 450,000 fewer people would have qualifed for health-related benefits, although Labour has said it will re-consult on the changes. Ministers have said changes to the current welfare system are necessary, pointing out the spiralling number of people claiming health-related benefits. There are now 3.7 million people of working age receiving them – 1.2 million more than in February 2020. A consultation launched by the Conservatives in June put forward proposals such as changing the eligibility criteria for work capability assessments, redesigning the PIP assessment, and replacing certain cash payments with vouchers. Labour has said it will put forward its own proposals, but has not ruled out any of these measures. However, the new report argues that any of these measures would be detrimental, finding that the economic value of ensuring disability benefits for those who need them far outweighs the cost to the government of providing them. This is because there is a monetary value attached to improving wellbeing, as set out in Treasury guidance, worth around £12,300 annually per person. With around 3.5 million claimants currently receiving health-related support, this translates to a potential £42 billion in annual economic benefits. This would far exceed the £28 billion cost to the exchequer in delivering these benefits, the report finds. Matt Whittaker, CEO at Pro Bono Economics, said: 'Disability benefits provide crucial financial support for millions of people, helping to offset the extra living costs that many disabled people face in their day-to-day lives. But we now know that they do so much more: boosting the mental wellbeing and life satisfaction of recipients to a level well beyond the cash cost of delivery. 'Reforms to simplify the claims process would make this support even more effective, by improving the experience for existing claimants and removing barriers for many more who could benefit.' The authors have urged the government to reconsider any planned changes to disability benefits which look to make 'short-term' savings. Their report argues that the benefits system already has too many barriers preventing claimants from getting the support they need. Any changes should make benefits more accessible, they add, rather than less. Ayla Ozmen, Director of Policy and Campaigns at Z2K, said: 'These findings show that the narrow focus on the rising cost of disability benefitsmisses the bigger picture. The report reveals that disability benefits actually provide a boost to the economy: spending on disability benefits should be seen not as a drain on public finances but as an investment in economic growth. 'Instead of focusing on how to make short-term savings by reducing financial support for disabled people, the government needs to recognise the wider economic gains of disability benefits and instead concentrate on ensuring support is available to everyone who needs it.' He adds: 'Removing or reducing hundreds of pounds of vital financial support for disabled people would have a devastating effect. Already over 88% of low-income households on disability benefits can't afford the basics, including food, energy costs, prescriptions and transport to medical appointments. Further cuts will inevitably push people deeper into poverty and leave people in worse health.' A DWP spokesperson said: 'We have been clear that the current benefits system needs reform so it is fairer on the taxpayer and people get the support they need to move into work. 'Building on our Get Britain Working White Paper, we will bring forward proposals for reforming the health and disability benefits system in the Spring. This will be part of a proper plan to help disabled people who can work to secure employment while ensuring support is provided for those who need it, with a commitment to put the views and voices of disabled people at the heart of any policy changes that directly affect them.'
