Moving Forward

Abstract

Abstract This final chapter sums up and sets out what we think can be done to provide people more adequate shelter against financial poverty, using the poverty levers discussed in this book: out-of-work and in-work minimum income protection packages. Throughout this book, we have identified and discussed a range of policy instruments that can be deployed to make sure people have an adequate minimum in financial resources. These include minimum wages and other forms of wage regulation, child benefits, tax credits, social assistance top-ups, and other allowances. If well-designed, these instruments can complement and reinforce each other. We have demonstrated that there is substantial variation in the levels and design of minimum income protection provided to people in advanced welfare states. Although optimal policy mixes cannot be readily defined—economic context, budget constraints, and other country-specific factors matter—our results reveal four vital steps towards improving minimum income adequacy. First, raise wage floors. Second, have universal child benefits as a first layer of direct income support. Third, have a legally anchored, adequate, accessible social safety net. Fourth, have more mildly targeted income supplements for lower income households, whether working or not. In short, we advocate a multi-instrumental and multi-layered approach and a redistributive approach that builds on the principle of targeting within universalism. We have at times compared this to a richly layered lasagne to contrast it to the silver bullet approaches advocated by others.