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Public attitudes towards inequality, redistribution, and welfare
provision
Tom Sefton
London School of Economics
Attitudes towards inequality
• Most people think gap between rich and poor is too large
% who say that the gap between those with high and low incomes is...
0
10
20
30
40
50
60
70
80
90
100
1983 1985 1987 1989 1991 1993 1995 1997 1999 2001
% o
f a
ll re
sp
on
de
nts
too large about right too small
Source: British Social Attitudes Survey
Attitudes towards inequality
• Most people think gap between rich and poor is too large
• Concern about inequality extends across social and economic groups
Income gap is too large...
0
10
20
30
40
50
60
70
80
90
100
Conserva
tive
Labo
ur
Libera
l dem
ocra
t
<£10k
£10-
20k
£20-
38k
>£38k
18-3
4
35-5
455
+
% w
ho
ag
ree
Source: 2002 BSA
Attitudes towards inequality
• Most people think gap between rich and poor is too large
• Concern about inequality extends across social and economic groups
• Problem is (at least) as much to do with the top end of income distribution
Perceived average earnings of different occupations (1999)
Median response (£ per annum)
Does earn
Should earn
Shop assistant 9,000 12,000
Unskilled factory worker 10,000 12,000
Skilled factory worker 15,000 18,000
Solicitor 50,000 40,000
Manager of large factory 55,000 50,000
Appeal court judge 80,000 50,000
Chairman of large corporation 125,000 75,000
Ratio between highest and lowest 13.9 6.3
Source: 1999 BSA
Attitudes towards inequality
• Most people think gap between rich and poor is too large
• Concern about inequality extends across social and economic groups
• Problem is (at least) as much to do with the top end of income distribution
• Clear majority believe government has a responsibility to reduce inequality
Attitudes towards redistribution
• Much less agreement on whether government should redistribute from rich to poor
Government should redistribute incomes from better off to less well off...
0
10
20
30
40
50
60
1986 1988 1990 1992 1994 1996 1998 2000 2002
% o
f a
ll re
sp
on
de
nts
Agree Neither Disagree
Source: British Social Attitudes Survey
Attitudes towards redistribution
• Much less agreement on whether government should redistribute from rich to poor
• Ideological gap has narrowed, but differences by age have emerged
Changing attitudes towards redistribution, 1987-2002
% who agree that the government should redistribute income from better off to those who are worse off
1987 1996 2002Change:
1987–2002
By party identification:
Conservative 21 22 21 0
Labour 69 58 49 -20
By age group:
18–34 50 44 34 -16
35–54 42 46 38 -4
55+ 42 43 43 +1
Source: British Social Attitudes Survey
Attitudes towards redistribution
• Much less agreement on whether government should redistribute from rich to poor
• Ideological gap has narrowed, but differences by age have emerged
• How to reconcile this with attitudes towards inequality?
Attitudes towards public spending
• Strong and continuing support for higher spending and taxes
Views on public spending and taxation
0
10
20
30
40
50
60
70
1983 1985 1987 1989 1991 1993 1995 1997 1999 2001
% a
gre
ein
g w
ith
sta
tem
en
ts
increase taxes and spend more on health, education and social benefits
Government should…
Attitudes towards public spending
• Strong and continuing support for higher spending and taxes:– Extends across socio-economic groups– Almost as strong among private welfare
users– Health and education are highest priorities– Most would favour relatively small
increases in spending in these areas
Attitudes towards public spending
• Strong and continuing support for higher spending and taxes…
• Contrasts with decline in support for “more spending on welfare benefits for the poor”
Views on public spending and taxation
0
10
20
30
40
50
60
70
1983 1985 1987 1989 1991 1993 1995 1997 1999 2001
% a
gre
ein
g w
ith
sta
tem
en
ts
increase taxes and spend more on health, education and social benefits
spend more money on welfare benefits for the poor even if means higher higher taxes
Government should…
Attitudes towards public spending
• Strong and continuing support for higher spending and taxes…
• Contrasts with declining support for “more spending on welfare benefits for the poor”
• Though widespread support for benefits to certain groups
Public attitudes towards welfare spending on poor or vulnerable groups
% who say they would like to see more government spending on benefits for:
Retired people
Disabled people
who cannot work
Parents who work
on very low incomes
Single parents
Unemployed people
Of those who agree that government should spend more on welfare benefits for the poor
79 78 78 47 33
Of those who disagree that government should spend more on welfare benefits for the poor
67 56 58 27 7
Source: 2002 BSA
Attitudes towards social security
• On the one hand, benefit levels seen to be inadequate by many people
Attitudes towards social security
• On the one hand, benefit levels seen to be inadequate by many people
• On the other hand, there are strong and growing concerns about disincentive effects and fraud
Attitudes towards social security
• On the one hand, benefit levels seen to be inadequate by many people
• On the other hand, there are strong and growing concerns about disincentive effects and fraud
• Hardening of attitudes in recent years, especially among Labour identifiers and younger people
Benefits for unemployed are too high or too low
0
10
20
30
40
50
60
1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002
% o
f all
resp
onde
nts
Too low and cause hardship
Too high and discourage work
Neither of the above
Source: British Social Attitudes Survey
And finally…
• Redistribution is not seen as a key outcome of public spending and taxation
• But, there does appear to be strong support for redistribution as ‘by-product’ of taxing and spending in ways people want
• Concept of mutuality: people pay in what they reasonably can and draw out what they reasonably need
