Fair, simple and future-proof

The title of this book, ‘Fair, simple and future-proof’, refers to three pleas for universalism in social security. These pleas should be seen as a search for a more solid foundation for the welfare state. The complexity of the fragmented system no longer functions satisfactorily: it excludes people, applies strict con-ditions, results in a fragmentation of legal positions, necessitates arduous re-covery payments and sanctions, and thus frustrates the general public. At the same time, it is ill-equipped to provide effective protection to the working poor and those who are excluded from the labour market. Moreover, the current system is insufficiently responsive to new social developments and social risks in areas such as work-life balance. With the best of intentions, the legislator tries to make adjustments within the existing framework, but because the prin-ciples of the system itself are not fundamentally challenged, schemes become increasingly complex and opaque. Meanwhile, policymakers lose track of what the social minimum is, which groups are eligible and what conditions should apply. Universalism may break the stalemate.In this book, we explain what should be understood by universalism in so-cial security. Briefly put, it refers to equal protection at an adequate level for all members of society. As such, universalism is based on the principle of ‘one size fits all’, although additional income protection can be organised for groups that are deemed particularly worthy of social protection.The roots of universalism reach back to the emergence and expansion of the welfare state in the years following World War II; a period characterised by ‘solidary reciprocity’ and the recognition of fundamental social rights. Since the advent of neoliberalism, however, these values have faded into the background. Yet, more recently universalism is back in the spotlight in the backdrop of new challenges facing society. Particularly, technological innova-tion and flexibilization, and related inequalities in the labour market and soci-ety. Universal arrangements are capable of responding to these challenges, since they bring about fewer exclusions on the axes of labour activity/inactivity and wage-employment/self-employment.The quest for universalism in social security is not a nostalgic exercise. It can also manifest itself in new forms. Two variables are important here: means-testing (between selectivity and universalism) and spending autonomy (be-tween tied and untied benefits). If we translate these characteristics into income protection instruments, varying systems become visible such as guaranteed minimum income, redeemable tax credits (related to a negative income tax) or a basic needs allowance.In this contribution, we describe the characteristics of such systems without expressing a preference for them. Nevertheless, we note that scenarios tending towards less means-testing and more spending autonomy come out strongest. Thus, the idea of universal basic income unintendedly knocks on researcher’s door.The proposal for a redeemable tax credit-system comes close to universal basic income, were it not for the fact that it is accompanied by a progressive tax rate, which gradually skims off the benefits of this credit as one’s earnings increase. This qualifies this proposal as a good alternative to the current system of social fiscal allowances that exist in the Netherlands and several other de-veloped countries as well. Actually, the recent proliferation of these allow-ances could even be associated with an emerging form of universal basic in-come. From the flaws of the existing system, new forms are again developing.Whatever the precise design will be, a new universal system of minimum in-come protection is necessary to realise a sustainable foundation for the welfare state of the 21st century.This book forms the final publication to the research project ‘The future of the universal welfare state: between social assistance and a guaranteed mini-mum income’ which was made possible thanks to financial support from In-stituut Gak. The project ran from 2018 to 2022