In brief, first, the global economy has brought with it high rates of unemployment and economic inactivity in much of Europe. It has also generated strong pressures to de-regulate and create flexible labour markets with sharp rises in wage dispersion, part-time, temporary and casual employment particularly in the UK and USA. In the wake of these changes have come substantial increases in poverty and inequality of income and wealth in many countries - markedly in the UK. This has created two important challenges for the future development of welfare policy - the relationship between employment and income equality and the threat to the perception of shared risks which underpinned Beveridge's social insurance scheme....
