Sir, – As social policy academics, we read with interest David McWilliams’s article on the Irish welfare state (“Ireland has a bigger welfare state than almost anywhere in the world”, Opinion & Analysis, June 6th).
He raises some important points, including: the Irish welfare and tax system is progressive and redistributes income from the rich to the poor more than any other welfare system in Europe; and the extent to which people of all ages benefit from social protection. We must add that the welfare state also includes social services such as education, health, social care, childcare and housing so that everyone benefits on the basis of need.
Nevertheless, we disagree with his conclusion that Ireland has a bigger welfare state than almost anywhere in the world. Comparative welfare state research indicates that Ireland’s system is not generous in the European context. Welfare state scholars overwhelmingly classify Ireland as belonging to the liberal model as distinct from social-democratic or continental models, for example. This means benefits are meagre and highly means-tested compared to welfare states in Scandinavia and continental Europe. For instance, paid parental leave did not exist in Ireland until five years ago and it is paid at one of the lowest and shortest rates compared to other advanced welfare states. While our income tax does a lot of heavy lifting to reduce income inequalities, non-liberal welfare states charge higher social insurance contributions. For instance, sick pay contributions are ear-marked and create earnings-related entitlements, which constitute social rights that are far more protected against cuts than tax-based entitlements. Hence, people in these countries report higher life satisfaction and sense of security compared to those in liberal welfare states like Ireland, the UK, or Australia. Moreover, liberal welfare states rely far more on occupational benefits, which further increases inequality as it depends on luck if the sector you work in offers an extra cushion/benefit. Ireland’s liberal labour market is also weakly regulated and offers less employment protection, which contributes to the highest wage inequality in Europe. Finally, liberal welfare states rely heavily on “out-of-pocket” payments. It would be unheard of in any other European welfare state that children pay to see a GP. When your ability to pay for a GP depends on the market, this classifies as liberal. Some recent changes to Ireland’s tax and welfare system feature social democratic welfare programmes such as increased childcare subsidies, and free GP cards for those under eight years. However, the underlying liberal market characteristics have not changed, such as relying on private childcare provision and out-of-pocket payments. – Yours, etc,
Prof KAREN ANDERSON,
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Dr MATTHEW DONOGHUE,
Prof BRYAN FANNING,
Dr NAONORI KODATE,
Dr STEPHAN KÖPPE,
Prof MICHELLE NORRIS,
Dr MARIA PIERCE,
Dr NESSA WINSTON,
School of Social Policy, Social Work and Social Justice,
University College Dublin,
Belfield,
Dublin 4.