Welfare catastrophe

sir – In 1996 I wrote a paper illustrating the consequences of an unreformed welfare system (Letters, February 1) based on published material from the Institute of Actuaries and various social studies of the original Beveridge welfare model, later introduced (in much-altered form) by the Labour government in 1948.

With Frank Field and others, I tried to get politicians to address what to me seemed to be an obvious road to ruin without radical alterations to the principles adopted by Labour, especially the failure to involve the voluntary friendly societies that had administered and supplemented the benefits since inauguration in 1908. Their involvement was vital in encouraging the self-reliance most people then exhibited to ensure adequate support in time of sickness, old age and penury.

Their role was taken over without compensation. The state, over time, increased the range of benefits, the criteria being related to “need” not eligibility. So extra burdens were placed on the system.

The collective effect of these measures has been catastrophic on the moral duty of self-reliance and independence, and for the social cohesion that was the essence of the traditional friendly society – which encouraged an altruistic attitude, benevolence and discipline with regard to claims controls to protect the majority of members’ funds.

The idea that no care need be taken by individuals to save for sickness, unemployment or old age became commonplace, as the state would not allow people to go without. The impact is now obvious – though these policies were no doubt well meant.

Mr Field was charged by Tony Blair to “think the unthinkable” as welfare reform minister, but met with opposition from traditional socialist sources, even though the principle underpinning the effort was essentially socialist: let the strong in the community look after the weak.

The need is now urgent to halt this system before it consumes all our resources. We must return to a principled approach based on firm economic models. Politicians of all parties have failed us, but mostly the needy, who will ultimately bear the cost of doing nothing. Peter Gray Tunbridge Wells, Kent