Updating the UK's social security system so everyone, especially those who most need it, can thrive in today's world, is:
- entirely affordable;
- would boost UK Gross Domestic Product (GDP), by 1.1% to 2.4% per capita;
- and increase employment by 0.7%. to 2.1%
These are the findings of a new University of Warwick Research Briefing which has examined investment in the UK's social security system.
"Like the NHS, our social security system needs to be there for us all: if we become unwell or disabled; we're caring for a loved one; or struggling to make ends meet. But times have changed and the system needs updating," says Dr Michael Orton from the University of Warwick's Institute of Employment Research and author of the Briefing.
The new Research Briefing by the University of Warwick, Simple, affordable and popular: Updating social security system considers the financing and investment of an updated social security system and includes economic modelling of a proposal for an updated system which would ensure no one is ever left with less than the equivalent of 50% of the minimum wage (around £190 a week).
Dr Orton added: "The investment required for this proposal is found to be far less than sums such as the £683 billion held by just 171 UK billionaires, the £480 billion which forms only part of the cost of the UK system of tax reliefs or the £100 billion HS2 project.
"Updating our social security system as proposed, is estimated at £71 billion which is less than the £78 billion which is estimated as the current cost of poverty."
Modelling also found there would be positive macroeconomic impacts including boosts to GDP and employment with initial investment easily covered by closing tax loopholes and other options.
Dr Orton added: "The Research Briefing shows a fit for purpose UK social security system is entirely do-able. It's a hugely positive finding.
"The 1945 generation understood investment in social security has social and economic impacts. It's high time we remembered that lesson and recognise updating our social security system as a foundation for a strong society and economy".
A Research Briefing by the University of Warwick, Simple, affordable and popular: Updating social security system, can be found here.
