Sacrificial citizens? Activation and retrenchment in Ireland's political economy - Sciendo
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03 Dukelow.qxp_Admin 69-2 30/04/2021 14:01 Page 43 Administration, vol. 69, no. 2 (2021), pp. 43–65 doi: 10.2478/admin-2021-0013 Sacrificial citizens? Activation and retrenchment in Ireland’s political economy Fiona Dukelow School of Applied Social Studies, University College Cork, Ireland Abstract This article provides a critical commentary on Irish activation policy. It is framed with reference to the point made in Pathways to Work 2016–2020 that a key purpose of activation is ‘to help ensure a supply of labour at competitive rates’. It looks at how a tougher work-first activation regime can be situated within the wider landscape of reform and retrenchment in the social protection system following the 2008 financial crisis. Broadly utilising Pierson’s concepts of programmatic and systemic retrenchment, it situates the roll-out of activation within shifts toward greater reliance on means-tested benefits for the unemployed, and toward work first, with varying degrees of compulsion, for other working-age adults in the social protection system. Suggesting that this results in a hierarchy of ‘welfare sacrifice’ for the sake of the competitiveness of the Irish economy, it also looks briefly at how some of these ‘sacrifices’ are experienced by different groups both in and out of the labour market. The article concludes by noting that the Covid-19 pandemic has temporarily transformed state–market relations such as these; however, whether this offers the opportunity to forge a more supportive turn in activation policy post-pandemic remains an open question. Keywords: Activation, Ireland, social citizenship, retrenchment, welfare reform 43
03 Dukelow.qxp_Admin 69-2 30/04/2021 14:01 Page 44 44 FIONA DUKELOW Introduction The task of this article is to provide a critical commentary on Irish activation policy in the context of the welfare reforms and retrenchment that have evolved since the 2008 financial crisis. The starting point is a sentence from Pathways to Work 2016–2020 which refers to one of the key purposes of activation in the context of economic recovery. This purpose, according to the document, is about increasing ‘active labour market participation by people of a working age (including people with disabilities and lone parents) so as to help ensure a supply of labour at competitive rates and to minimise welfare dependency’ (Government of Ireland, 2016, p. 14; author’s emphasis). This point frames the critique pursued in this commentary. The significance of this sentence did not really hit home until it was quoted by the author in a presentation on Irish labour market policy and activation at the European Trade Union Institute in 2018. A remark made by a respondent to the presentation, who commented on the ‘violence’ of this activation aim, was hugely thought-provoking and, in a sense, revealed the ideological underpinnings of Irish activation hiding in plain sight. While associating activation with ‘violence’ might be contentious, in the context of that remark it came from a place of critical distance. Such critical distance is a valuable check against policy debates that can often be quite insular affairs, taking the nuts and bolts of reform, and the assumptions and imperatives of domestic policy agendas for granted. This commentary wishes to acknowledge the ‘miserableness’ of being unemployed, the vital importance of access to decent work or the ‘right to be commodified’ (Orloff, 1993, p. 318), and the constraints and challenges under which policy is formulated. However, in the spirit of critical distance, it reflects on the ways Ireland’s activation trajectory connects activation with retrenchment in the service of an economy and welfare system under the influence of a particular articulation of neoliberalism. Maintaining economic competitiveness has for a long time been the linchpin of Ireland’s political economy and is, in a sense, a portal through which understanding and acceptance of neoliberal thinking and values in Ireland is narrated. In this context, activation policy, entangled with an agenda of welfare retrenchment, is problematic in the way that it erodes social protection as social citizenship. It appears that social protection is instead viewed as a fiscal-cum-cultural problem of welfare dependence, and whose main role is to make people ‘fit’ for a labour market which, in the context of
03 Dukelow.qxp_Admin 69-2 30/04/2021 14:01 Page 45 Sacrificial citizens? Activation and retrenchment in Ireland’s political economy 45 maintaining competitiveness, means, for many, low-paid, insecure employment. The commentary concentrates on reforms following the 2008 financial crisis and recovery. Over a decade on, we are now in the midst of a new welfare state crisis, and responses to the Covid-19 pandemic have temporarily upended the thrust of the post-2008 policy reform. With thoughts turning to post-Covid recovery, it is a pertinent moment to also consider what trajectory welfare reform might take this time. This question is briefly reflected upon in the concluding section. Activation and retrenchment as tangled drivers of welfare reform Across Europe, activation and retrenchment have been twin drivers of welfare reforms since the 1990s, with a stepping up of both following the 2008 crisis (Borosch et al., 2016). Unsurprisingly, interest in welfare retrenchment research stems from the 1980s when the economic shocks of the 1970s, combined with the resurgence of neoliberalism, began to undermine the fiscal and normative foundations of the post-World War II welfare state. A number of endogenous challenges ran in parallel with these, including the maturation of social protection programmes, in particular pensions; and the emergence of new, or heretofore unrecognised, social risks, including those related to diverse family formations, caring and the needs of growing cohorts of people with long-term, chronic illnesses and disabilities. How retrenchment is conceptualised, how it is measured and the degree to which it is occurring, has since been the subject of much debate and contention (Starke, 2006, forthcoming). In the process, debates often lose sight of the real impact of retrenchment in exercises beloved of data crunching and what can seem classificatory minutiae. Often rather narrowly and literally associated with cutbacks, in the sense of reductions in social expenditure, a broader conceptualisation trains us to look at institutional changes. A foundational and enduring contribution in this regard comes from Pierson (1996), who saw the potential for retrenchment across three institutional dimensions in terms of how welfare is designed and delivered, including ‘(1) significant increases in reliance on means-tested benefits; (2) major transfers of responsibility to the private sector; and (3) dramatic changes in benefit and eligibility rules that signal a qualitative reform of a particular programme’ (Pierson, 1996, p. 157). Many of these dimensions fall
03 Dukelow.qxp_Admin 69-2 30/04/2021 14:01 Page 46 46 FIONA DUKELOW into what Pierson identified as programmatic retrenchment, which refers to the way that states reduce the level of, or the rights and entitlements attached to, social protection. As Starke (forthcoming, p. 3) points out, another type of retrench- ment identified by Pierson is systemic retrenchment, which ‘refers to policy changes that, while leaving social welfare programs intact in the short run, weaken its funding arrangements, manipulate public opinion and weaken support groups or key features of the institutional environment that form the basis of the welfare state or individual schemes’. This type of retrenchment is typically given less attention and is more difficult to identify as intentional retrenchment. In the Irish context this is doubly difficult, especially when it comes to how public opinion is shaped by political discourse; the clientelist system still holds sway, and policy and political discourse motivated by welfare retrenchment can often be ambiguous, euphemistic and oscillating. Contrasting with retrenchment, activation is typically treated as a separate dimension of welfare reform: as an expansionary impulse that offers opportunities for those claiming welfare, especially forms of activation that offer training and employment opportunities. However, as well rehearsed and typologised, activation means many things, both ideologically and practically, across different countries (Barbier, 2004; Bonoli, 2011), ranging between human resource development and labour market attachment (work-first) approaches, or between enabling and punitive interventions. Typically the former have been in retreat and the latter have been the ones to ‘expand’ (Knotz, 2019). This is a trajectory that can be discerned across many European instances of activation since the early 2000s, with a further stepping up in the context of scarce resources and increased need since the 2008 crisis (Lødemel & Moreira, 2014). From this it can be said that retrenchment and activation are not binary opposites but are in fact entangled, and that many types of activation interlock with welfare retrenchment, especially if we go beyond the literal understanding of retrenchment as cutbacks in social expenditure. Taken together they contribute to the ongoing project of welfare state restructuring that elides welfare in favour of work within the social protection system and accelerates (re)commodification and the individualisation of social risks. Wendy Brown’s (2016) concept of sacrificial citizenship seems particularly apt here, even more so in the context of economic competitiveness in Ireland’s political economy and activation strategy. According to Brown (2016, p. 3), the neoliberal economisation of
03 Dukelow.qxp_Admin 69-2 30/04/2021 14:01 Page 47 Sacrificial citizens? Activation and retrenchment in Ireland’s political economy 47 political and social life means that everyone is seen in human capital terms: ‘work and citizenship are configured as modes of belonging to the business (“team”) one works for or the nation of which one is a member’. In this sense ‘neoliberalism emancipates individuals from one kind of state regulation and social solidarity to make them available for interpellation and integration by a different set of political–economic imperatives and arrangements’ (Brown, 2016, p. 4). Orders of value conventionally associated with welfare such as equality, social justice, personal autonomy or even the paternalistic traditions associated with the protective value of welfare are displaced by the prioritisation of market values. All ‘working-age’ adults are seen in terms of their value as a competitive supply of labour, and the value of social protection is displaced by welfare dependency and the need to minimise it. Looking at the specifics of the Irish trajectory, a variety of push factors, both external and internal, led to a momentum coalescing in the early 2010s to transform the social protection system, from what the then Minister for Social Protection described as its ‘largely passive approach’ to ‘a pro-active work first system’ (Burton, 2011). The system’s passivity was emphasised in a range of appraisals, including the OECD’s review of Ireland’s activation service (Grubb et al., 2009), which Martin (2015, p. 9) likened to finding ‘the emperor who had no clothes’ for its poor implementation of activation policy. Similarly, under European Commission/International Monetary Fund/ European Central Bank (troika) scrutiny, Ireland’s activation system was found lacking, particularly in terms of its institutional infra- structure and implementation of sanctions, and its transformation was central to the structural reforms attached to financial assistance. Irish research also found institutions and processes were characterised by ‘inertia’ (Martin, 2015), and the activation process was criticised for being ‘lax’ and ‘light touch’ (McGuinness et al., 2013). Activation was also criticised for being poor in terms of outcomes, showing sub-par performance in terms of employment progression; something which McGuinness et al. (2013) suggested reflected participants’ learning of the lax nature of the system upon attending an activation interview. Between 2009 and 2015 a raft of changes took place to payment levels, to programme rules and to the whole architecture of the system (space does not allow a full discussion of these but see Dukelow (2018) and McCashin (2019) for greater detail). In contrast to longer and multiple waves of reform occurring elsewhere in Europe, Ireland underwent a much more rapid and compressed phase of change. The speed and
03 Dukelow.qxp_Admin 69-2 30/04/2021 14:01 Page 48 48 FIONA DUKELOW scope of change, and the overall capacity to institute change, were certainly notable (Köppe & MacCarthaigh, 2019). Yet in some ways it might be said that the country followed its particular style of ‘crisis routine’ (van Hooren et al., 2014). This implies that the shock effect of the 2008 economic crisis accelerated particular desired welfare reforms, especially in the years in the immediate aftermath of the banking crisis and when Ireland was under the tightest phase of troika conditionality and supervision between 2010 and 2013. Subsequently, even before the disruption posed by the pandemic, there was at least a partial return to the more typically slow pace of policy reform, and there are continuing tensions between policy aspirations and practice. In this context, and reflecting the fact that neoliberalism in practice transacts with local influences, path dependencies and resistances, not to mention co-existing alternative practices and ideas, there remains a ‘hierarchy of welfare sacrifice’ for the economy in how activation and retrenchment have evolved in the recent Irish experience. The unemployed are under a new regime, as are lone parents, but in a somewhat modified mode compared to the unemployed. People with disabilities are being brought into the activation sphere, but on a voluntary basis. Others, namely ‘qualified adults’, are still on the margins, but are increasingly mooted in active/inactive terms. Almost all working-age adults are thus potentially on a hierarchy of ‘sacrificial citizenship’. This is to say they are being ‘made available for interpellation and integration’ (Brown, 2016, p. 4) into a competitive labour market via a lexicon and an evolving set of welfare practices that revolve around constructs underpinned by an obligation to work, including capacity to work, inactivity, dependency and joblessness. In the next section these points are explored further. The tangled trajectory of activation and retrenchment in the Irish social protection system: A hierarchy of welfare sacrifice Pierson’s understanding of retrenchment is returned to here to decipher some of the ways activation and retrenchment have evolved. However, his dimensions of retrenchment are broadly deployed rather than as a systematic or precise measuring exercise. A rather ‘unfaithful’ use of the framework is therefore made, as a set of cues to situate work-first activation policy within the wider landscape of welfare retrenchment and how, in tandem, they chart a course of ‘sacrificial citizenship’. There is a tension perhaps in drawing on Pierson’s conceptual framework as it makes no mention of activation
03 Dukelow.qxp_Admin 69-2 30/04/2021 14:01 Page 49 Sacrificial citizens? Activation and retrenchment in Ireland’s political economy 49 or of how it might relate to retrenchment. However, as argued here, in the context of Irish welfare reforms since the financial crisis, the roll- out of activation, and the impact it has had on the experience of social citizenship by recipients of welfare, cannot be fully grasped without considering the way it has unfolded within a wider project of welfare retrenchment. A more demanding work-first approach works alongside a less protective social security system for working-age adults. In broad deployment, therefore, Pierson’s first and third dimensions are looked at together; in other words, data trends on means-tested and social-insurance-based payments are paired with some discussion of how programmes have changed qualitatively in terms of rules and eligibility, and what these trends imply for different groups claiming welfare and/or being activated. The bulk of the discussion that follows focuses on these areas in keeping with the extent of changes that have occurred. This is followed by some brief discussion of how services have ventured into private types of provision before an equally brief look at some efforts at what might be construed as systemic retrenchment. Shifts in the reliance on means-test benefits and changes to benefit rules Looking firstly at how Jobseeker’s Benefit (JB) has evolved vis-à-vis Jobseeker’s Allowance (JA) in terms of claimant numbers, a gap has opened between those able to claim via social insurance and those accessing support via the means-tested process (Figure 1). Even as the unemployment rate, in the pre-Covid context at least, returned to the lower levels prevailing before the 2008 crisis emerged, proportionately more unemployed people now rely on the more conditional JA payment.1 While historically there has been a less dualistic system in Ireland compared to many other European countries between labour insiders and outsiders in terms of unemployment insurance and how it compares to minimum assistance programmes, unemployment insurance has been downgraded further since the 2008 crisis. It is more difficult to claim because of the greater number of contributions required, and the duration of benefit, already comparatively limited, has been further reduced. In short, social protection for the 1 There are two dynamics at play here, policy-based change and outturn change, namely the expiration of entitlements, regardless of policy change. Calculating the relative balance of each is outside the scope of this paper.
03 Dukelow.qxp_Admin 69-2 30/04/2021 14:01 Page 50 50 FIONA DUKELOW unemployed is more likely to be in the form of the insecure, individualised, intrusive and stigmatised route of means-tested JA, compared to the rights and entitlements, abridged as they are, of JB. Ireland was also comparatively unusual in its pursuit of retrenchment via three different policy settings; that is, reducing benefit levels, reducing duration of entitlement and tightening eligibility criteria. Use of these instruments as single measures was common across Europe in response to crisis, but it was rare for governments to use all three. In Borosch et al.’s (2016) comparative study, for example, all three instruments were used only by Portugal and Ireland. However, in Ireland a number of changes were executed before the onset of troika- imposed conditionality (Dukelow, 2015), whereas in Portugal, after initially improving social protection in 2009, retrenchment occurred under the conditions imposed by the troika (Lødemel & Gubrium, 2014). Figure 1: Jobseekers’s Allowance, Jobseeker’s Benefit and the unemployment rate Source: Department of Employment Affairs and Social Protection, and Eurostat. Outside of unemployment/jobseekers’ payments, when we look at numbers on insurance-based working-age payments compared to
03 Dukelow.qxp_Admin 69-2 30/04/2021 14:01 Page 51 Sacrificial citizens? Activation and retrenchment in Ireland’s political economy 51 numbers on assistance-based working-age payments, the trend is less distinct and subject to more fluctuation (Figure 2). However, between 2008 and 2019, as a totality, the gap between the former and the latter widened. Figure 2: Non-job-seeking working-age welfare recipients (insurance and assistance) Source: Department of Employment Affairs and Social Protection. There have also been some shifts in the composition of both insurance and assistance-based payments (data presented in two separate Figures, 3 and 4, for legibility), which relate to changing eligibility rules. In particular, the eligibility criteria and duration of Illness Benefit (IB) have changed significantly so that it is now limited to one or two years, depending on contributions paid. Prior to 2009 entitlement was indefinite. The increase in Invalidity Pension recipient numbers, though not quite matching the drop in IB, may reflect this change to the duration of IB (Figure 3). For the programmes with smaller numbers of claimants, the growing number of claimants of Partial Capacity Benefit is most notable (Figure 4), and reflects the gradual conversion of disability into a work capacity issue, as discussed further below. As for assistance-based payments, there have been some compositional changes here too. Figures 5 and 6 include the payment
03 Dukelow.qxp_Admin 69-2 30/04/2021 14:01 Page 52 52 FIONA DUKELOW Figure 3: Non-job-seeking working-age welfare recipients (insurance) Source: Department of Employment Affairs and Social Protection. Figure 4: Non-job-seeking working-age welfare recipients (insurance), cont. Source: Department of Employment Affairs and Social Protection.
03 Dukelow.qxp_Admin 69-2 30/04/2021 14:01 Page 53 Sacrificial citizens? Activation and retrenchment in Ireland’s political economy 53 types with the most discernible shifts. Some correlate with policy changes, most notably in relation to the One Parent Family Payment (OPFP) and increasing efforts to roll out activation to lone parents. This payment therefore saw some of the most significant change to eligibility rules during the crisis period, because of the cut-off point when the claimant’s youngest child reaches seven years of age (as opposed to twenty-two if the youngest child remained in full-time education, prior to 2014). The significant decline in the number of OPFP claimants is partially made up by the introduction of Jobseeker’s Transition Allowance (JST), which brings lone parents of older children (those aged seven to thirteen) into the orbit of activation and sanctions for non-compliance, but does not require claimants to meet the ‘genuinely seeking full-time work’ clause of JA (Figure 5). Other notable increases in claimant numbers can be seen in Carer’s Allowance (CA) and even more prominently in Disability Allowance (DA). Some of the increase in CA claimants maps on to the rise in numbers of people claiming DA where recipients are people being cared for (Boyle, 2019) (Figure 6). However, the rise in DA claims is the subject of much policy concern in its own right, as is the activation of people with disabilities. The latter issue partly reflects the desire on the part of people with disabilities who rely on social protection, and for whom the risks of poverty, exclusion and discrimination are well established, to have access to decent training and employment opportunities. Yet it also signals a framing of disability in economic terms as a matter of fitness to work: government actors are ‘waking up to the fact that ... an awful lot of people are in that grey space between being fit for work and being unfit for work’ (government respondent cited in Vossen & van Gestel, 2015, p. 170). This in turn is fused with concerns about the fiscal sustainability of the growth in disability-related payments; the fact there is a demographic increase in people with disabilities; ‘migration’ from IB and JA to disability payments; and the fact that people with disabilities make up a significant number of the adults to be found in ‘jobless households’ (Callaghan, 2017; Government of Ireland, 2017). While there has been a proliferation of disability- specific activation programmes and activation is not compulsory for this cohort, such moves, however, do gradually change the status of disability in the social protection system. It shifts from an eligibility for welfare or social protection issue to an availability for work or work capacity issue. This in turn mirrors the earlier displacement of unemployment with job-seeking and the behavioural expectations
03 Dukelow.qxp_Admin 69-2 30/04/2021 14:01 Page 54 54 FIONA DUKELOW attached to this recategorisation and mode of ‘making up people’ (Hacking, 2006, p. 24). Moreover, in a neoliberal political economy environment this is embedded in a discourse of ‘neoliberal-ableism’ that evaluates disability against an ideal standard of autonomy and self-sufficiency through work (Goodley & Lawthom, 2019; Van Aswegen, 2020). The decline and eventual disappearance of Pre-Retirement Allowance is also notable, especially as complete abolition of programmes is rare in the context of retrenchment (Starke, forthcoming). The allowance, which allowed those aged fifty-five and over to switch from JA and thus not be required to be available for and genuinely seeking full-time work, was abolished for new recipients from 2007. Since 2011 this meant that older jobseekers were also subject to the new sanctions and penalty rates regime; however, those aged sixty-two and over were given a reprieve from January 2014. Behind all these recipients are large numbers of ‘qualified adults’. They are partners of recipients and predominantly women, whom Murphy (2018) describes as ‘invisible’, and who conventionally do not Figure 5: Non-job-seeking working-age welfare recipients (assistance) Source: Department of Employment Affairs and Social Protection.
03 Dukelow.qxp_Admin 69-2 30/04/2021 14:01 Page 55 Sacrificial citizens? Activation and retrenchment in Ireland’s political economy 55 Figure 6: Non-job-seeking working-age welfare recipients (assistance), cont. Source: Department of Employment Affairs and Social Protection. make welfare claims in their own right, because of the continued legacies of Ireland’s male breadwinner tradition and the lack of individualisation in practice. The overall number of working-age qualified adults is quite sensitive to labour market trends and so it mirrors the recent arc in job-seeking claimants: rising from 78,577 in 2008 to a peak of 133,158 in 2014 and falling back again to 71,133 by 2019.2 And while job-seeking-related qualified adults are declining in number, this is offset somewhat by a rise in qualified adult claims associated with the rise in disability-related claims. Folded into discussions about ‘economically inactive’ adults, joblessness and jobless households, ‘qualified adults’ are becoming increasingly visible as a policy problem in need of an activation solution, from their inclusion in 2006 in discussions in Government Discussion Paper: Proposals for Supporting Lone Parents (Department of Social and Family Affairs, 2006) about reform of OPFP through to Pathways to 2 This excludes any partners of recipients of the various state pensions who may be of working age.
03 Dukelow.qxp_Admin 69-2 30/04/2021 14:01 Page 56 56 FIONA DUKELOW Work: Action Plan for Jobless Households (Government of Ireland, 2017). Together with people with disabilities, and also increasingly carers, they are interpolated in terms of their potential as labour supply in tight labour market conditions (Government of Ireland, 2017). Problems with the fact that activation services do not have direct contact with this cohort because of their indirect/dependent claim status mean that reforms are still primarily at proposal stage for this cohort, as outlined in Pathways to Work: Action Plan for Jobless Households (Government of Ireland, 2017). If fully implemented, these proposals will gradually absorb this cohort into job-seeking policy and practices via a JST process, following the same model of how OPFP has been transformed, complete with the conditionalities associated with this transformation. It is worth noting that while conditionality and compulsion are being stepped up in terms of their reach (from jobseekers to lone parents, to ‘qualified adults’), there remains a demarcation with people with disabilities. This may reflect different dynamics of deservingness and the organisation and ability of this sector to resist retrenchment and particularly negative reforms, in contrast to the ‘qualified adult’ cohort, who continue to remain ‘invisible’ in this regard. Underlying the bulk of the changes discussed so far is, in turn, the substantial change to eligibility rules represented by the normalisation of sanctions and penalty rates in the social protection system since their appearance in the Social Welfare (Miscellaneous Provisions) Act 2010 and their extension in the Social Welfare and Pensions Act (Miscellaneous Provisions) 2013. In contrast to the pre-existing legislative code (Social Welfare Consolidation Act 2005), which provided for a nine-week disqualification period but whose use was very rare, these more recent changes in conditionality/threat of conditionality potentially add a more ‘everyday’ element of fear and punitiveness in the terms of engagement between caseworkers and claimants. Since the practice of imposing penalty rates was introduced in 2011 (when 353 penalty rates were applied in total), the number of people penalty rated continued to rise until 2017 (13,503) while falling slightly since (9,878 in 2019 until 3 November), a pattern which signals that an increasing proportion of the unemployed are being sanctioned over time. Another dynamic not reflected in the formal statistics is the ‘hassle effect’ (Lødemel & Gubrium, 2014, p. 343) of such a regime, where fear of sanctions serves as a work-first strategy in its own right and pushes people off the live register and into precarious employment. While still being described as more ‘benign’ (National
03 Dukelow.qxp_Admin 69-2 30/04/2021 14:01 Page 57 Sacrificial citizens? Activation and retrenchment in Ireland’s political economy 57 Economic and Social Council, 2018) than sanction norms in other countries, and that is certainly the case in contrast with our more ‘illiberal’ UK neighbour (Dukelow & Kennett, 2018), in the wider OECD context they are considered to be reaching OECD norms (OECD, 2018). Whatever the benchmark, their introduction does represent a significant departure in Ireland’s activation and retrenchment trajectory. Transfers of responsibility to the private sector Moving on from discussion of the shifting patterns in the social protection system vis-à-vis means-tested versus insurance-based claims and related discussion of changes to eligibility, here discussion turns briefly to the remaining dimension of Pierson’s (1996, p. 157) retrenchment schema, namely ‘major transfers of responsibility to the private sector’. However, privatisation is taken up here in a different fashion compared to how Pierson identified it, which was payment by private providers. In the Irish context, privatisation of services via the introduction of JobPath in 2015 is most notable, which, as a service, is intended to drive more ‘intensified engagement’ (Government of Ireland, 2017) with the long-term unemployed. This was developed under troika conditionality, in the context of a lack of public service capacity, along with the perceived attractiveness of outsourced services, to deliver efficient and clearly defined outcomes in the context of Ireland’s economic crisis. Still at the end of an extended first contract phase, JobPath represents a substantial policy departure and is now a sizeable component of Ireland’s activation infrastructure, having worked with 283,826 referrals by October 2020 since its institution in 2015 (Dáil Éireann, 2020). It comprises over one-third of personnel working in Public Employment Services (631 out of a total of 1,717 staff) and the largest share of activation expenditure (39 per cent) (Lavelle & Callaghan, 2018, based on 2017 data), and works on a partial Payment-by-Results model. Besides the publicly provided service, Intreo, other providers are also external, but are not-for-profit and paid by grant for the cost of the service, including Local Employment Services (LES), Job Clubs and the EmployAbility service (together comprising 378 staff) (Lavelle & Callaghan, 2018, based on 2017 data). Following the maxim ‘if you can’t privatise it, market it anyway’ (Dryzek, 2013, p.129), these services have also come under the orbit of market-based tools in how public services are contracted and governed. Competitive tendering is in the pipeline for LES and Job Clubs. This is anticipated to have a substantial impact on how
03 Dukelow.qxp_Admin 69-2 30/04/2021 14:01 Page 58 58 FIONA DUKELOW these services operate as local community-based and socially valued services (Murphy et al., 2020). Systemic retrenchment? Finally, what of systemic retrenchment? Here focus is placed on one medium of systemic retrenchment, namely political discourse and narrative that potentially has a negative impact on welfare attitudes and support for the social protection system. While there are no sustained, overt anti-welfare narratives in mainstream political discourse, notable influential episodes of negative welfare framing have included the early economic crisis phase when the ‘generosity’ of the welfare system came under the spotlight. In this case, generosity was a word used in a subtle mix of credit claiming and blame avoidance in political discourse for the cuts to welfare payment levels in 2010 and 2011, and which became amplified in public and media discourse (Dukelow & Considine, 2014). Subsequent divisive narratives have included references to ‘people who get up early in the morning’ used in the Fine Gael party leadership campaigning in 2017 and the relatively brief but very prominent welfare fraud campaign, also in 2017: ‘Welfare Cheats Cheat Us All’. Both these narratives craft stories of ‘them’ and ‘us’ and potentially cast doubt on the legitimacy of all welfare claimants. While the specific and long-term impact of these narratives are questions that cannot be answered without dedicated research, some indication of the changing nature of Irish welfare attitudes can be gleaned from two rounds of the European Social Survey, which gathered data on welfare attitudes in 2008 and again in 2016. What is most compelling about the Irish data is the near uniform move towards more positive attitudes to a fair and equal society, and to the role of social protection and social services, occurring during this period. In contrast, survey questions specifically about the unemployed show the opposite result and demonstrate a hardening of attitudes towards the unemployed and the level of support they ought to receive. Table 1 demonstrates this with the results for selected attitudes towards fairness, the role of social benefits and social services, and towards the unemployed. ‘Sacrificial’ consequences One of the clearest ways we know of the consequences of recent reforms in Ireland has been through research which has evaluated
03 Dukelow.qxp_Admin 69-2 30/04/2021 14:01 Page 59 Sacrificial citizens? Activation and retrenchment in Ireland’s political economy 59 Table 1: Irish attitudes towards fairness and equality, social services and unemployment, 2008 and 2016 2008 2016 Overall Overall Overall Overall agreeing disagreeing agreeing disagreeing (%) (%) (%) (%) For fair society, differences in 62.2 20.7 66.4 14.4 standard of living should be small Social benefits/services place 60 22 51.5 31 too great a strain on economy Social benefits/services make 62.9 22.6 58.4 25 people lazy Most unemployed people do 31.1 53.5 39.6 42 not really try to find a job Overall Overall Overall Overall bad (%) good (%) bad (%) good (%) Standard of living of 26.3 16.8 17.9 33.5 unemployed Overall Overall Overall Overall yes (%) no (%) yes (%) no (%) Standard of living of 55 4.4 51.6 6.5 unemployed, government’s responsibility Source: European Social Survey, 2008 and 2016. their impact on lone parents. This puts the ‘sacrificial’ nature of the changes in sharp relief, with an evaluation of the reforms finding that employment increased amongst this cohort, but so did the risk of poverty, with lone parents being especially at risk of low-paid, part- time jobs. In all, 48 per cent of those who lost OPFP experienced a loss in income (Indecon, 2017). Asked about the impact of the reforms on their well-being, 43 per cent of lone parents who participated in the research felt their well-being had deteriorated, compared to 23 per cent who felt it had improved. For their children, 40 per cent felt the reforms had damaged their children’s well-being; 21 per cent felt they had improved it. More recent analysis by the Society of St. Vincent de
03 Dukelow.qxp_Admin 69-2 30/04/2021 14:01 Page 60 60 FIONA DUKELOW Paul (2019) found that the proportion of working lone parents in poverty more than doubled between 2012 and 2017, rising from 8.9 per cent to 20.8 per cent. This is much higher than the overall figure for adults in work in Ireland (5.2 per cent in 2017, falling to 4.8 per cent in 2018). Moreover, at this overall level, in comparative European terms, Ireland has a relatively low level of in-work poverty. Aside from in-work poverty, when it comes to low pay, the ‘competitive’ nature of Ireland’s economy stands out in its consistently high incidence of low pay in the OECD and in Europe, usually ranking in the top five countries in the OECD index. This, according to Sweeney’s (2020) analysis, is not because Ireland has an unbalanced economy with a predominance of low-paid sectors (such as wholesale, retail, hospitality and some parts of the public sector); it is more because of the intensity with which these sectors use low pay. It is to this segment of the labour force that many welfare recipients (the low- skilled, the long-term unemployed, lone parents and potentially ‘qualified adults’) are channelled in activation that emphasises work first over education, training and up-skilling that meet the needs, life situations and preferences of the unemployed. When combined with the ‘hassle’ effect of activation, the fact that low-paid work offers very limited progression opportunities and employees are easily replaceable because of the low-skills nature of the work poses a risk of cycling in and out of work and welfare (Citizen’s Information Bureau, 2019; National Economic and Social Council, 2018). Pfannebecker & Smith (2020) identify this as ‘malemployment’, where the boundaries between employment and unemployment are blurred and conditions of poverty and insecurity are common to both states. The combined effects of welfare retrenchment and activation which underpin the Pathways to Work aim of helping to ‘ensure a supply of labour at competitive rates’ (Government of Ireland, 2016, p. 14) therefore shape a certain type of work first. This is, moreover, integral to a certain type of market making in Ireland’s political economy and the unequal shape of the Irish labour market. Conclusion This critical commentary has offered an analysis of the ‘violence’ of the aims of Irish activation policy by looking at how a tougher work- first activation regime can be situated within the wider landscape of reform and retrenchment in the social protection system following
03 Dukelow.qxp_Admin 69-2 30/04/2021 14:01 Page 61 Sacrificial citizens? Activation and retrenchment in Ireland’s political economy 61 the 2008 financial crisis. Broadly utilising Pierson’s concepts of programmatic and systemic retrenchment, it has situated the roll-out of a tougher activation regime within wider shifts toward greater reliance on means-tested benefits for the unemployed, and toward work first, with varying degrees of compulsion, for other working-age adults in the social protection system. Suggesting that this results in a hierarchy of ‘welfare sacrifice’ for the sake of the competitiveness of the Irish economy, it also looked briefly at how some of these ‘sacrifices’ have been experienced by different groups both in and out of the labour market, and cycling between the two states. This in turn leads to the conclusion that activation policy does not approach the labour market as a given but is integral to how the state is involved in market making and the unequal, competitive shape of the labour market. The Covid-19 pandemic has upended state–market relations in many ways. ‘A crisis like no other’ (Georgieva, 2020), it has brought the state back in to social and labour market policy with force, generating a scale of welfare and work support unthinkable prior to the crisis across European welfare states. In the short term at least, security has trumped sacrifice, and austerity and welfare retrenchment are notable only for their absence in the initial response. As the pandemic evolves and brings with it enormous uncertainty, it is anticipated to create a lengthy unemployment shock as economies remain in a weakened state, with the low-skilled, younger people, migrants and women particularly vulnerable (OECD, 2020), including in Ireland (Byrne et al., 2020). This is a huge challenge for activation services for the next phase of the Pathways to Work policy. There have been contradictions and invidious distinctions in the ‘two-tier’ pandemic response between the ‘pandemic unemployed’ and those already unemployed. Moreover, discourses around incentives to work have tended to focus on the ‘generosity’ of pandemic supports over the realities of the low-pay economy. Yet, the supportive policy responses, not only in the form of work and unemployment supports offered but also in the suspension of sanctions, raise significant questions. In particular, about whether this is momentary, a part of a new round of a ‘crisis routine’, or whether it poses the foundation for a deeper, critical juncture and a more enabling, supportive activation and social protection system, if the crisis is really ‘like no other’. This remains an open question, but one which seems more potent to ask now than any time since the 2008 financial crisis.
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