Summary: | This chapter shows how the UK tackled the crisis. The UK was affected early
and implemented a post-crisis stimulus package quickly. But from 2010, with a
new government, austerity was the watchword, with cuts in social security
expenditures prioritized over tax increases. Spending on education and health
was shielded, as were old-age pensioners’ benefits, but those of families with
children were reduced. From 2015 a Conservative majority government
continued on a similar path, though also implementing tax cuts and a higher
minimum wage. Under the new Prime Minister, the aim of balancing the public
finances was postponed. Initially the pain of the crisis was shared more broadly.
But financial hardship increased after 2012, especially for lone parents and
disabled people, and benefit cuts affected women in particular. Whilst
employment has increased, recovery has been slow. It seems unlikely positive
welfare state developments can be expected in the near future.
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