The regulatory welfare state in pension markets: mitigating high charges for low-income savers in the United Kingdom and Israel

How does the rising ‘regulatory welfare state’ address social policy concerns in pension markets? This study examines this question by comparing the regulatory responses to high charges paid by low-income workers in pension markets in the UK and Israel. In the UK, with the recognition that the market would not cater to low-income workers, the regulatory response was the creation of a publicly operated low-cost pension fund (NEST), a ‘public option’ within the market. This allowed low-income workers access to a low level of charges, previously reserved for high-income and organised workers. In Israel, regulation sought to empower consumers, while providing minimal social protection by capping pension charges at a relatively high level, thereby leaving most of the responsibility for reducing the charges with the individual saver. By comparing these two cases, the article develops an analytical framework for the study of the regulatory welfare state, making two contributions. First, it highlights different types of regulatory citizenship: minimal regulatory social protection as opposed to a more egalitarian approach. Second, it identifies an overlooked regulatory welfare state strategy: creating ‘public option’ arrangements, whereby a state-run (but not funded) service operates within the market

Types of Administrative Burden Reduction Strategies: Who, What and How

This article contributes to the growing body of research on administrative burdens by providing a theoretically- and empirically-driven typology of governments’ burden reduction strategies. Despite the mounting interest in burden reduction, the literature still lacks a typology for systematically identifying and classifying such strategies. The article identifies three analytical dimensions of burden reduction: distributive (who bears the burden), intensiveness (what the level of burden is), and relational (how burden is experienced in bureaucratic encounters). Based on these dimensions, and drawing on a systematic analysis of the case of social security in Israel, we identify, define and characterize seven distinct strategies of burden reduction: shifting, sharing, discarding, simplifying, expediting, communicating, and respecting. The article concludes with a discussion of these strategies, their applicability, practical implications, and directions for the research agenda on burden reduction. Keywords: administrative burden, administrative burden reduction, social security, bureaucratic encounters, Take-up, Israe