Journal Article

The Cost-of-Living Crisis in the UK and Ireland: on Inflation, Indexation, and One-Off Policy Responses

Collins, Micheál L., Hick, Rod

2024

Overview

This paper compares social policy responses to the cost-of-living crisis in the United Kingdom (UK) and Ireland. In seeking to protect citizens from an inflationary shock, a series of fundamental social policy questions arise. What would the aims of support packages be? To what extent should support be universal or targeted? If targeted, did existing policy architectures facilitate or frustrate the targeting of support? As the scale and persistence of the inflationary shock became evident, smaller and near-universal responses gave way to larger support packages with a greater reliance on targeting. Social security systems played an important role in policy responses, though often by passporting one-off payments rather than a strengthening of these core programmes. Passporting led both to improved distributional outcomes vis-à-vis the more universal elements but created new administrative challenges and led to rough justice in some circumstances. The reliance on one-off payments underlined the temporary nature of policy responses.

• Publisher: Cambridge University Press
• Subject: Age / Central banks / Coronaviruses / Cost of living / COVID-19 / Crises / Indexation / Inflation / Pandemics / Payments / Pensions / Price increases / Reliance / Security systems / Social policy / Social response / Social security / Social systems / Society / Standard of living / Taxation / Themed Section on Social Policy Responses to the Cost-of-Living-Crisis