Welfare markets and personal risk management in England and Scotland

Clasen, Jochen and Andow, Caroline and Koeppe, Stephan and Koslowski, Alison and Meyer, Traute (2017). Welfare markets and personal risk management in England and Scotland. [Data Collection]. Colchester, Essex: UK Data Archive. 10.5255/UKDA-SN-851865

The project investigated risk management strategies of above average income households in England and Scotland. In the UK especially those with above average incomes are often assumed to have access to or seek private forms of risk protection, partly based on company provision or private voluntary protection complementing or substituting public social protection. The project investigated how households protect themselves against income loss due to unemployment, sickness or retirement and plan for expenses like long term care and higher education costs. We focused our analysis on how households balance these risks between public, occupational and private forms of protection. Moreover, we explored how the recent financial crisis has influenced the attitudes and behavior of households regarding their personal protection. The project sought to answer how and why some middle class households plan for contingencies and engage in private risk management strategies while others do not.

Data description (abstract)

The project adopted a broad approach, employing quantitative as well as qualitative methods. It covered both public and private forms of risk protection, and it analysed attitudes as well as actual behavior. First, we reviewed Britain's current 'mixed economy of welfare' in the aforementioned five key areas. We mapped the social programmes, occupational schemes and private options that have been available since the early 1990s. The second phase was based on quantitative data analysis, making use of the Family Resources Survey (FRS) and the ABI Risk and Protection Survey. We analysed the take-up of insurances and how it was influenced by attitudes and socio-demographic characteristics. Third, we conducted 61 qualitative interviews, where we explored personal risk management strategies of middle-income households from Scotland and England. The main result was a typology of risk management rationales that guide household economies. This stage also explored the ramifications of the recent financial uncertainties and economic downturn.

Comparing England and Scotland, the purpose was to review Britain's current 'mixed economy of welfare' in key areas: unemployment, sickness, costs of higher education for children, retirement and infirmity in old age. The aim was to map the types of statutory protection against such risks and contingencies and examine changes in the scope of public provision. In parallel, we will examine the scope of non-statutory (occupational and personal) provision, investigating how 'private welfare markets' have developed since the early 1990s.
The second phase is based on quantitative data analysis of household savings and investment behaviour in insurances and private market-based contracts for risk protection. Finally, via qualitative interviews, we explore personal risk management of socially and economically similar families from Scotland and England. This stage will also explore the potential ramifications of the most recent financial uncertainties and economic downturn.

Downloads

Altmetric