posted on 2022-01-31, 12:37authored byTania A. Hernandez
The aim of this research is to examine the social impact of the austerity programme initiated in the UK in 2010. The thesis examines the effects of the policies in three main areas: the public sector labour market, public services, and the sustainability of the public sector. It adopts an analytic narrative approach and utilises both inductive and deductive reasoning. After an initial exploration of the social impact of the austerity programme, a deductive framework is proposed to provide an explanation as to why the UK government pursued it. The framework put forward is that the policies were chosen by the government to promote competitiveness and higher revenues in the private sector. The analysis reveals that the austerity programme has eroded social development in the UK. Spending reductions have led to a precarious public sector labour market. The living standards of many public employees have deteriorated, as is revealed in the changes in their household disposable income, savings, and debt, as well as their reliance on foodbanks. It also evidences that different social problems such as homelessness, crime, and child poverty became more severe during the austerity years. Furthermore, the sustainability of the public sector has been put at risk, which has negative implications for vulnerable groups who need public services the most. This thesis makes several valuable contributions to the austerity literature by carrying out an exhaustive and cautious examination of interrelated policies under the austerity programme, which allows for a deep understanding of the social impact of the policies. This thesis also makes a crucial contribution by showing that the social outcomes of the austerity programme can only be fully understood if analysed in combination with the government’s reasons for having pursued it, as well with the economic factors that have constrained its success.