Adam Smith Institute

Reform of the welfare state has been a strong theme in public policy pronouncements over recent years. Much of the pressure for reform has come from a burgeoning social security budget and, partly as a result of measures taken and partly as a result of substantial reductions in unemployment in the later 1990s, expenditure growth has fallen back of late. Underlying pressures for increased spending remain, however, and budgets will likely grow more quickly again when the effects of falling unemployment wear off.
 

Mid-February 2001, and the Prime Minister proposes that we should start an investment account for every child in Britain. A baby bond' that would be invested and would grow. And perhaps even added to over the years in order to give every Brit a useful cash sum at 18. That could help them fund their higher education, or special health needs, or housing costs, or could be rolled into a pension for their retirement. Great new idea, or what?