ABSTRACT
This chapter discusses the relationship between two central features of contemporary economic and social policy: the development of 'flexible' labour markets and of policies of labour market deregulation; and welfare state retrenchment. It also discusses the role of the Beveridge report in producing a framework for the British social security system which embodied various key assumptions regarding the operation of the labour market. The chapter considers some of the key changes in labour markets since Beveridge and examines the approach to labour market regulation of both Conservative governments of the 1980s and 90s and the Labour Government elected in May 1997. It also examines the approach of governments of both parties to welfare state retrenchment. The chapter concludes that a shift in finance and provision of this type has significant potential for increasing social insecurity.
