My X thread about Deborah Meaden's comments on the winter fuel allowance has done numbers, as the kids say, but I suspect that those who criticised it, and perhaps some who appreciated it, didn't get the joke at the beginning or ultimately the point at the end, though the latter may be down to not reading the entire thread. Excuse me if I ignore the cardinal rule of both comedy and the British royal family and try to explain.
Meaden trots out the classic argument of the rich against universal benefits: I don't need it so the taxpayer's money is being wasted. This is often accompanied by an assurance that the unnecessary government largesse is routinely donated to charity, so virtue triumphs in the end. You'll note that this argument and its corollary are less often heard when tax cuts for the wealthy are being justified, though the rationale is the same. If you're already incurring the top rate of tax on a large part of your income, why do you need more money? In that instance the argument in favour of tax cuts focuses on incentives: that the prospect of keeping more of your earnings will make you more productive, which can only help the wider economy. This is a consequentialist argument: what matters is the outcome, which is presumed to be good. There are similar consequentialist arguments against universalism, which can be summarised using Albert O. Hirschman's The Rhetoric of Reaction: giving money to people who don't need it discredits the benefits regime and so lowers public support for the needy (perversity); in benefiting everyone, no one gains in relative terms (futility); and an income guarantee weakens the effect of any incentive to expand income and so undermines the wider economy (jeopardy).
Meaden's argument is different in that it isn't simply consequentialist but utilitarian (a narrower form of consequentialism), which means it concerns itself with calculable efficiency, the greatest possible good, rather than just an assessment of good versus bad. Specifically, it seeks to maximise aggregate utility through discrimination: "Lots of people should not get winter fuel allowance…lots should", as she put it in her tweet. The former group have a negligible marginal utility because they are rich, the latter have a high marginal utility because they are poor, and there is an implied gradient between the two where everyone can be positioned. One paradox of utilitarianism (among many) is that achieving this macro optimality requires a granular focus on the micro foundations - the utility calculus of the individual - hence Meaden's focus on her own circumstances. Solipsism is a hallmark of vulgar utilitarian reasoning: "I don't need X" or "I never had Y growing up". Jeremy Bentham's "felicific calculus" may have inspired the concept of utility in the emergent field of economics, but its ambitions to be a coordinating mechanism for society soon gave way among theorists (from Jevons to Hayek) to price as the only reliable signal of utility in aggregate. But while absent in the market, utilitarian calculus lived on in the realm of discretionary welfare, notably in the form of personal need assessments and means-testing.
Public goods, in the sense employed in economics, bypass the problem of individual assessment by operating wholly at the macro level. We assume, quite reasonably, that there is an aggregate benefit for society delivered by the provision of certain goods and services, such as roads. Economic theory holds that these goods are characterised by two features: they are non-excludable (i.e. freely available to all), and they are non-rivalrous (i.e. my use does not compromise your use). In reality, most public goods are imperfect in terms of this abstract defintion (or "impure", in the jargon). Nationalised utilities in the postwar era charged for use of gas and electricity, which meant you could be excluded (i.e. cut off). Today we still have toll roads, albeit with electronic turnpikes, such as part of the M6, the Dartford Crossing and the Humber Bridge. These are still classed as public goods, because the charges are treated as an impost (a supplementary tax based on use), but you will be excluded if you can't pay the toll. Likewise, roads are rivalrous because, as Adam Driver said in the 2023 film Enzo Ferrari, "two objects cannot occupy the same point in space at the same moment in time." In other words, congestion makes vehicles rivalrous (think of parking spaces).
In the UK, the logic of public provision was extended in the postwar era to many areas of the economy and public life previously subject to the market, giving rise to the concept of the social wage: the benefit that we individually gain from collective effort, whether in the form of public goods (roads, libraries), welfare services (the NHS, state schools) or direct financial payments (state pensions, unemployment benefit). In reaction, conservatives challenged both the extent of the social wage and the categorisation of its components, particularly in areas where the public sector was seen to be pushing back the private sector, such as health and education. Central to this reaction was the insistence that genuine public goods are few and far between and that what is left over within the scope of the social wage should be treated as a discretionary benefit and therefore means-tested (returning to the approach of the inter-war years). At the margin, among market fundamentalists, this reaction has led to continuing attempts to narrow the scope of public goods even further by either converting them to state-supplied commodities (e.g. road-pricing) or by privatising them altogether (e.g. railways and water companies).
It came as no surprise that some of those disputing the intentionally ridiculous comparison of public goods (roads) with a benefit (the Winter Fuel Allowance) should also be advocates of road-pricing. For them, "confusing" the two was a purity violation (to borrow a term from moral foundations theory), but not because they are champions of public goods but because they want to advance the narrowest possible interpretation of them. Their apparent inability to see a joke (clearly the WFA is not actually a public good) is similar to the media suspicion that advocates for public goods want to impose broadband communism or nationalise sausages - i.e. not entirely sincere. This po-faced response also points to a narrow conception of public policy discourse in which the mathematical calculus of liberal economics is all that matters: utility is not a laughing matter. This narrow perspective also means that such critics cannot see that Meaden's comments are not the self-evident common sense that they imagine but actually a highly political statement and one founded (consciously or not) in the ideological presumption that social policy should be determined by aggregate utility, i.e. utilitarianism.
The intersection of reactionary conservativism (minimse public goods) and liberal utilitarianism (maximise efficiency) has resulted in the steady erosion of the principle of universalism. A feature of this has been the tendency of liberals to adopt the conservatives' framing, talking about universal benefits as if they are public goods that had been erroneously categorised. This explains why the discussion of the viability of such benefits tends to centre on excludability (as a positive) and rivalry (as a negative). For example, "It is absurd to give the wealthy cash that they do not need" leads to the insistence that they be excluded so that the needy can have more (or, more likely, that the benefits "bill" can be reduced). The idea that the cash can simply be clawed-back through taxation is rarely entertained and then only to complain about its "redundancy", despite the obvious operational superiority of using an existing mechanism over creating a new means-testing regime. In contrast, rivalry tends to occur within the arena of universal benefits through engineered scarcity: the competition to get through on the phone to book a doctor's appointment, or going private to beat the waiting list. This framing of benefits as if they were public goods is adopted partly to avoid a frontal attack on universalism, which obviously remains popular (e.g. the NHS), but it also reflects the extent to which half a century of neoliberalism has shifted the discourse of social policy away from the collective to the individual through the vocabulary of representative agents, marginal utility and incentives.
The joke that opened the thread was an ironic response to Meaden describing the Winter Fuel Allowance as a "universal scheme". The WFA isn't universal - I don't get it and you probably don't either. You might counter that this is because it is for pensioners only, but then why describe it as universal? Well, you might retort, child benefit is universal but the childless don't get it, do they? Indeed, but they have no need of it. I, on the other hand, have fuel bills to pay but do not qualify for the WFA. The truth is that it was introduced by Gordon Brown (no fan of universalism) in 1997 as a targeted electoral bribe, to be paid to a Tory-inclined cohort and therefore a priority to be won over by a Labour government. But while she described the WFA as universal, Meaden's argument against it employed the language of the miscategorised public good: to paraphrase, "rich people like me should be excluded from it". I parodied this by pointing out the insanity of extending this logic to an actual public good, roads. In doing so I was also highlighting the absurdity of centring the public policy debate on the personal circumstances of individuals who are definitionally atypical of society: the rich.
The wider point is that not only are there very few "pure" public goods, which are both non-excludable and non-rivalrous, but there are nowadays very few genuine universal benefits either. Most of what we imagine to be universal, like the state pension, depends on National Insurance contributions. The truly universal - available to everyone regardless - are the minimal benefits when all other contributory benefits have run out, and the state has long aimed to restrict these to a minority who, by virtue of their dependence on them, are seen as recalcitrant and therefore worthy targets for public contempt. It's also worth noting the long-running campaign of the media to make even these minimal benefits discretionary: not to be paid to the feckless, to single mothers popping out babies and certainly not to asylum-seekers. The two-child cap, which was heavily promoted by rightwing newspapers, is literally a pointed refusal to accept that benefits should be universal. That it is targeted at the demonstrably innocent isn't simply an example of cruelty, it is a clear statement that need is irrelevant. Deborah Meaden's insistence that she doesn't "need" the WFA and her advocacy for means-testing are actually old hat. The bleeding-edge of social policy thought is the denial that society has any obligation to the needy.
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