ABSTRACT

Since the election of the Labour government in 1997, there has been a reassertion of the desire to return to a full-employment society. Indeed, the overarching thrust of UK work and welfare policy is predicated upon such a desire. The belief is that the only way of achieving a more 'inclusive' society is to insert citizens into employment (Bennett and Walker, 1998; Jordan, 1998; Levitas, 1998; McCormick and Oppenheim, 1998; Powell, 1999). To achieve this, society has witnessed the ceaseless introduction of policy initiatives. Under the banner of 'making work pay', by which is meant making employment pay, the rapid fire salvo of new policy initiatives include both 'carrots' and 'sticks' to entice people into formal jobs. The 'carrots' include: guaranteeing a weekly minimum wage through the Working Families Tax Credit (WFTC); introducing a 10 per cent starting rate of tax; 'modernising' National Insurance contributions; and introducing a minimum hourly wage. The chief 'stick', meanwhile, has been the introduction of 'welfare-to-work' policies such as the New Deals for young people, lone parents, the long-term unemployed and disabled (Bennett and Walker, 1998; DSS, 1998; Gregg et al., 1999; HM Treasury 1997, 1998; Hills, 1998; Oppenheim, 1998; Powell, 1999). UK economic and social policy, therefore, similar to many other advanced economies (see van Berkel, 2000; Roche, 2000), is dominated by a narrative that is based on achieving full-employment and equates social inclusion with insertion into employment and social exclusion with unemployment.