When is Choice Possible in Social Security?

Abstract

In recent years, the provision of public services has been reformed in many European welfare states. Inspired by ‘Public Choice’ and ‘New Public Management’ thinking, changes have emphasised competition, user involvement, and more efficient service delivery. Quasi-markets and vouchers have often been central elements in these developments.

The provision of services – public or private – can be regarded as an alternative to the provision of support in cash. Thus, the choice between income transfers and service delivery e.g. in relation to care of the elderly or of children, will have a (quantitative and qualitative) effect on the ways in which society supports the provision of care.

This article describes these changes and analyses new modes of delivery (which are often associated with ‘marketisation’). It discusses when choice is possible for service users and whether, given the need for greater efficiency, it can be combined with use of the market-mechanism. It specifically analyse the use of vouchers and the conditions under which vouchers can contribute to achieving the combination of increased empowerment of users and greater efficiency without having a detrimental impact on access to services or the distribution of welfare. Vouchers are employed as a means of ascertaining whether, and under what conditions, choice is possible. In this sense greater use of free choice is construed as being positive if it can combine increased empowerment and greater efficiency without any negative distributional impact.

The paper concentrates on elements of choice within the social services, emphasising variations between different service areas. It concludes by attempting to emphasise the aspects that decision-makers must be aware of when increasing the extent of choice offered to the users of public services.