Long Term Consequences Of Residualisation Social Policy Essay

For those in demand of lodging in the UK, many low-income and deprived people and households have turned to the Government for aid in the signifier of public lodging. However, there has been any figure of challenges in footings of supplying the right measure and, most significantly, quality of public lodging to run into the demands of assorted UK communities. In the Thatcher epoch of the 1980s, the Government decided that residualisation of council lodging would be the best solution, thereby switching the duty to supply demands and services off from the province and onto the person and household.

In order to farther look into the causes and long-run effects of the residualisation policy of the 1980s, the context for council lodging will foremost be examined in order to understand the demand for this type of public lodging, including its societal composing and why a displacement toward residualisation occurred. It is besides of import to analyze some of the economic, political, and societal forces that may hold besides led to this displacement, including globalization and industrialization, the new anti-state political orientation of Thatcherism, the policies that were created during this clip such as the Housing Act 1980, and the turning jobs within the UK that led to the trust on council lodging.

Last, in looking at the long-run effects of residualisation, it would look that this displacement merely led to greater jobs instead than solutions. Assorted effects will be explored, including the addition in hapless lodging stock, neighbourhood instability, greater inequality between the categories, and the hapless perceptual experience of council lodging. However, one long-run effect that can be seen as positive is the overall addition in place ownership during the 1980s and beyond, which has provided a new manner for many persons and households to set up a better economic stature.

The Context for Residualisation

In order to better understand the causes of residualisation, it is of import to first put the context for this displacement. At one clip, the public lodging sector was the fastest turning facet of the UK lodging system and was favoured by the Labour authorities as a manner to house persons and households after World War II. In 1945, Aneurin Bevam, the Minister of Health, told the House of Commons ;

We shall inquire the local governments to be the chief instruments for the lodging programme. It is a rule of the first importance that the local governments must be looked as the organisations and the beginning for the edifice of the chief majority of the lodging programme. The local governments are admirable suite for this intent. ( House of Commons 1945: 1 ) .

This was seen as a manner to better service everyone within society and make a more equal playing field between categories. It was seen as a manner of lodging working people, irrespective of their income, and there was no stigma of failure attached to those that did take this option during its early old ages ( Cowan and Maclennan 2008: 11 ) . Council lodging was viewed as an investing construction that would let the UK to offer low-cost lodging, and this system was found to be capable of “ prolonging new constructing programmes on cost balanced rents, good within the affordability of people on mean incomes ” ( Ready 2007: 2 ) .

In analyzing council lodging during this period, the belief was that “ the accent was on interrupting down the barriers and differentiations between groups in society, opening up public services to all on the footing of demand, without probe of ability to pay ” ( Malpass, 1990: 74 ) . This clip period was known as Welfare Capitalism, concentrating on the common good and equality through the development of public services and societal protection ( Scanlon and Whitehead 2008: 17 ) . The term, “ working categories ” was even removed from the 1949 Housing Act as a manner to set up council lodging as a new assorted community that broke new land on taking the category and income barriers that had antecedently existed. This meant higher quality criterions for council lodging, thereby bring forthing a positive point of view on council lodging up until the 1980s.

At that point, there was a unequivocal displacement in how council lodging was viewed with a quickly low lodging stock that merely offered little flats for the neediest groups. The public lodging sector stock basically peaked at 6.5 million in 1979 but, by December 1986, the figure had fallen to under 5.9 million ( CIPFA, 1986: 1 ) . As of 2007, the council lodging stock has fallen to 3.8 million ( Housing and Dependency Working Group 2008: 14 ) . Figure 1.1 besides shows the diminution in council lodging from a extremum of 31.7 per cent in the late seventiess to 26.7 per cent in 1986, exemplifying how the residualisation policy altered the handiness of quality council lodging. The latter subdivision will discourse the causes of the diminution of council lodging.

Causes: Switching Policies, Political Ideologies, and Economicss

In the early 1970s, Titmuss linked the residuary theoretical account of societal public assistance to the thought and beliefs of rightist economic experts, such as Hayek, Friedman, and followings of the Institute of Economic Affairs, who were to go so influential with the authorities a decennary subsequently ( Forrest and Williams, 1984: 1165 ) . The residuary theoretical account of societal public assistance is based on the position that the market and the household should be the chief supplier of all demands and services.

This was portion of the Post-Industrial position, which was a reaction by the Governments after the seventiess because they feared that they would be unable to pull off their national economic systems in the face of globalization ( Scanlon and Whitehead 2008: 17 ) . As such, the province has a minimum function to play in direct proviso, providing merely for those who genuinely have proved that they can non back up themselves. This attack measures a individual ‘s public assistance against their place in the labor market so that the province would be certain to merely complement the market instead than to vie with it.


Within the kingdom of globalization, the UK lodging market has become integrated into the planetary flow of fiscal markets where money moves freely and quickly through states and utilizations ( Waters, 1995: 64 ) , altering how the state has viewed its lodging stock. To take part in the planetary markets, the British economic system was so restructured in an effort to better manage their labor markets, revenue enhancement policies and public outgos in a manner that would maintain tighter control over what was doled out to its citizens in the signifier of public aid.

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The consequence was so to reconsider where the state would put its money in footings of programmes for public aid, thereby switching the focal point off from council lodging and onto puting in private lodging that could be financed through the planetary market system. The policy has shifted to “ right to purchase ” in public rented lodging, taking to a deficit of investing financess for public lodging and act uponing the stock transportation to lodging associations that use private adoption to stretch what public money is received ( Forrest and Murie 1988: 131 ) .

Political factors

When the conservative party won the 1979 general election, it considered that its lodging policies, including the ‘Right to Buy ‘ strategy that became portion of the Housing Act 1980, had contributed to its electoral success, so the political motion was geared toward the construct of place ownership for every bit many citizens as possible. This doctrine was built-in in the political relations of the twenty-four hours that was geared toward a capitalist attack to society in which there would be an expanded entree to capital assets beyond merely what was supplied on a public aid footing.

The political motion during the Thatcher disposal believed that the province would be freer to assist the state go more competitory in footings of its industries and fiscal art if it no longer had to be lumbered with the substructure that is involved in runing a public assistance province. The British New Right ‘s public assistance policies absolve the Government of taking any duty in footings of adhering to a certain criterion of life for all, thereby taking to redistribute income from the hapless to the rich ( Smith 1995: 189 ) . This would intend that those that exist at the underside of society must be “ disciplined and wrenched from its dependance on societal public assistance ” ( Wheelan 1999: 5 ) . Hence, the thought of residualisation was led by the political forces during that clip period.

Policy alterations

Policy alterations, including the Right to Buy strategy under the Housing Act 1980, were besides one of the primary causes of residualisation. During this clip, there was more of a concern about country reclamation instead than public aid ( Stephens and Lynch 2005: 6 ) , so supplying for place ownership was one manner in which country reclamation could take topographic point without a major investing by the Government. Michael Heseltine set out specific aims to increase the chances for place ownership, better lodging quality, provide greater value for money and more efficaciously use resources where the demands are more terrible. The solutions were seen in privatizing the lodging market, which meant cut downing the being of council lodging stock, curtailing capital investings by local governments, and altering the footings of renters ‘ rental rights ( Stephens et al. , 2005: 4 ) .

Those within council houses were so given the right to purchase at a price reduction up to a upper limit of 50 per cent after 20 old ages and would have a mortgage from their local authorization, taking away inducements for remaining in council houses except for those that could non financially buy a place or take out a mortgage ( Stephens et al. 2005: 4 ) . As the figure below indicates, 1980-1984 gross revenues of council places exceeded new edifice by private developers, bespeaking that residualisation was good underway.

Thatcher believed that set uping a Right to Buy programme that would replace the state-issued council lodging was a manner to liberate many in society from what she saw as the “ boring clasp of municipal landlordism ” and a manner to make a “ new cell of lodging consumers ” ( Houghton 2009: 2 ) . And, this program did work unusually good for those that had the agencies to take part whilst the remainder were left to vie for a “ diminishing pool of subsidized places ” whilst the worst of the council homes-mostly those ugly block edifices of the sixtiess and 1970s-were deserted or left to disintegrate with no support for renovation ( Houghton 2009: 2 ) .

Stock transportation

Stock transportation was one of the primary ways that residualisation was enacted because this policy badly reduced the council lodging stock. Stock transportation had a much more important impact than the Right to Buy policy with the authorities allowing the transportation of some 200,000 council houses per annum under stock as compared to 50,000 Right to Buy gross revenues in 1999 ( Stone 2003: 10 ) .

During this clip, there were legion steps that facilitated the transportation of the public stock to alternate landlords through the Tenants ‘ Choice and Housing Action Trust. The Large-scale Voluntary Stock Transfer ( LSVT ) besides played a cardinal function in which LSVTs were involved the sale of the local authorization ‘s full stock of rented houses and the transportation of its staff to a newly-formed lodging association set up for the intent ( Stone 2003: 11 ) . By April 1997, 54 councils had divested themselves of their lodging stock via an LSVT, taking to more than one one-fourth of a million places being transferred ( Stone 2003: 11 ) . Overall, it has been estimated that this facet of residualisation led to over 50 per cent growing in the owner-occupied sector ( Stone 2003: 11 ) .

Long-run Consequences of Residualisation

Due to these assorted factors, the causes of residualisation have led to some long-run effects. Some of these effects relate to what is now viewed as relentless market instability in footings of lodging monetary values since the low-cost rented sector that was at its extremum before the residualisation procedure of the 1980s has now all but disappeared whilst at that place has besides been more important alterations in the UK ‘s societal construction as mentioned below ( Ready 2007: 4 ) .

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Depletion of quality lodging stock and homelessness

The Right to Buy strategy and the large-scale stock transportation to lodging associations meant that most of the quality lodging was now sold, go forthing available council lodging for the needy that was in disrepair and in despairing demand of modernization ( Cantle, 1986: 58 ) . The monetary values of available places grew at a major faster gait than rewards and there were really few lease options available ( Cowans and Maclennan 2008: 11 ) . Despite the fact that most of the constructions were built prior to World War II and were traditionally constructed to a higher criterion, the 1980s saw these constructions begin to disintegrate with estimations of & A ; lb ; 19 billion to do fixs and modernize them ( Cantle, 1986: 61 ) . Since the Government was unwilling or unable to do these fixs, the bing stock of council lodging disintegrated further, further impairing the repute of council lodging ( Cantle, 1986: 62 ) .

This depletion of council lodging stock and the inability of certain groups to either measure up for what is available or delay on a list has led the Numberss of homeless in the UK to lift, exemplifying that the residualisation procedure has created new jobs instead than work outing old 1s ( Smith 1995: 196 ) . Despite the increasing homelessness job, the New Right in Britain continues to see increased public lodging as a mean to go on making dependence on a public assistance province amongst the hapless and unemployed ( Smith 1995: 199 ) .

Negative positions, stigmatization, and decrease of the council sector

Since the residualisation procedure seemed to assist out those that were willing and capable to back up themselves with minimum aid from the province, which left merely the disadvantaged to stay in the council sector, cut downing the size of the sector whilst besides stigmatizing those that remained a portion of this public aid programme ( Burrows, 1999: 31 ) . The statistics of those within the council lodging system further substantiated stigmatism of certain groups of persons, making bias, inequality in place ownership, and taking to instability in vicinities. For illustration, the London Housing Survey, 1986-7 showed that 4 % of all families in London were headed by individual parents but 9 % in the council sector, and about half of all Afro-Caribbean families lived in council lodging but were underrepresented in the proprietor business sector ( London Research Centre 1988: Tables 1, 2, and 4 ) .

Additionally, Forrest and Murie ( 1988: 68 ) stated that, by 1984, more than half of families in council lodging were headed by an economically inactive individual and that about two-thirds of council lodging caput of families were non working. Those that do work hold incomes in the bottom 40 % , as compared to the early 1980s when council renters had mean income that was 73 % of the national norm ( Housing and Dependency Working Group 2008: 14 ) . Table 1.1 shows how the aged and younger age groups have besides become significantly over-represented in council lodging since the early 1970s.

The consequence has led to a long-run system that geographically contains and stigmatises those populating in council lodging as bad topographic points in which those seeking public aid are looked down upon and excluded by society ( Social Exclusion Unit 1999: 2 ) . The general position that council lodging is welfare lodging for those on public assistance has been ingrained into the overall society, in big step, by the residualisation processes that have occurred over the last 50 old ages ( Somerville 2004: 2 ) . The lines between poorness and offense have become so bleary that the Government now uses the council estates as an illustration of how those within the underside of society are “ responsible for their ain wretched being ” ( Wheelan 1999: 5 ) , so that the remainder of society takes the same negative point of view of council lodging and those that live at that place.

The New Labour principle continues that of the Thatcher epoch in footings of destructing the UK ‘s civilization of a public assistance province by endangering to pulverize all council lodging, irrespective of whether people populating at that place now need this shelter or non, if these countries continue to “ retain high Numberss of the unemployed and welfare dependant ” ( Wheelan 1999: 4-5 ) , turn outing that the long-run consequence of residualisation will go on. However, at the same clip, it is interesting to observe that, despite the attempts of residualisation to assist those in demand, the figure of people in the UK life in poorness doubled from ten million in 1978-1980 to twenty million by 1998-1999 ( Stephens and Lynch 2005: 27 ) . It seems as though the purposes of this procedure really continued to make more negative effects than it was able to work out.

Neighbourhood instability and deficiency of community coherence

The residualisation of the council lodging section has led to a changeless churning and rotary motion of people within vicinities, making the long-run consequence of instability and a deficiency of community coherence ( Holman and Simpson, 1999: 23 ) . Leaving merely less flush older people and younger people within the council lodging section has created changeless alteration with the older coevalss deceasing and the younger coevalss turning restless and altering their abodes more frequently than households or other demographic groups ( Holman and Simpson, 1999: 24 ) . For illustration, the bulk of people traveling out of council lodging had lived at their old reference for less than five old ages and 31 % have moved after less than two old ages, bespeaking that “ those come ining council lodging in the recent yesteryear are progressively improbable to expect a long-run hereafter as local authorization renters ” ( Pawson and Bramley, 2000: 1257 ) .

The instability will be farther enabled by the polarization between available quality places and hapless places. As one edifice society noted, “ Monetary values for quality places will go on to lift, while monetary values for hapless places continue to fall as the market progressively Polariss ” ( Wheelan 1999: 4 ) .

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Growth in place ownership

This is non to state that the long-run effects are all negative as the growing of place ownership since the 1980s, doing the UK as “ home-owning society, ” can merely be viewed as a positive. As of 1995, the rate of place ownership was 66 % , up from 55 % in 1979 ( Smith 1995: 190 ) . Owning a place has been shown to be a agency of raising one ‘s societal position every bit good as bettering one ‘s economic terms and long-run stableness ( Smith 1995: 191 ) . Home ownership besides helps many communities regenerate and better the overall societal coherence. The fact that council lodging has non lived up to the promises of 50 old ages ago may force the Government to strike the full programme and develop advanced solutions for societal lodging demands or invent new ways of assisting the hapless to assist themselves ( Wheelan 1999: 5 ) .

The lone debatable facet of this overall advantageous effect is the continued inequality in category in footings of place ownership and the disagreement amongst demographic groups in footings of who can afford place ownership and who can non. There continues to be a terrible deficit of quality lodging stock for everyone, including those who would wish to buy places. And, while the globalization of fiscal markets did let for greater lodging finance options, the recent recognition crunch has besides shown that take parting in globalization has its monetary value excessively as support for mortgages has all but disappeared.


In looking at the present province of council lodging and public aid, it seems as though the primary causes of residualisation from the 1980s in footings of the globalised fiscal and loaning system and the political position of mensural disbursement on societal programmes will go on in the same mode traveling frontward. The recent planetary recognition crunch further impacts the on-going deficiency of focal point on supplying societal lodging due to cut down funding beginnings and budgetary cuts to Government funded programmes.

The future brings the demand for new schemes that offer community lodging instead than council lodging under a new umbrella of what is being called assorted term of office to guarantee the right stock of low-cost societal and private lodging that is intended to better equilibrate the ability to do quality lodging within the appreciation of all degrees within society. Whilst residualisation was one effort at interrupting free of a public assistance province but besides one that continues to maintain certain groups stuck without any upward mobility, there are other types of societal procedures that can be explored to better balance and prolong local communities.

In the terminal, it may non be the council lodging or public aid that is making a barbarous rhythm for the disadvantaged since the residualisation procedure has really led to greater poorness, homelessness, and other societal issues. The existent issue may be the demand to repair other programmes that do non affect public aid in footings of supplying more occupation chances, instruction and preparation, and schemes that improve the internal substructure of the UK instead than seeking to set a plaster on the job and trusting it merely gets better on its ain or transferring income over to those that are already prolonging themselves.

The issues involved have apparently been exacerbated by the residualisation procedure instead than solved the issue of a public assistance province. This is the clip when the UK Government must look inwards on how to supply more aid that allows people to assist themselves and put in what is already available to renovate and regenerate countries so that more citizens can bask a better quality of life.


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