The Welfare State Is Broken. Here’s How to Fix It.

A social entrepreneur in Britain shows the way.

I met Cottam in London last week and she made the point that welfare systems are often designed to manage needs, but they are not designed to build capabilities so that families can stand on their own.

Moreover, most Western systems were not designed to confront the kind of poverty prevalent today. When these systems were put in place in the 1950s and ’60s, unemployment was more often a temporary thing that happened between the time you got laid off from a big employer and the time you got hired by a new one. Now, economic insecurity is often a permanent state, as people patch together different jobs to make ends meet. Health issues for people in the welfare system are often chronic — obesity, diabetes, many forms of mental illness.

Our legacy welfare structures are ill suited to today’s poverty.

For example, Ella was asked if she would like to lead a “life team” that would help her family turn around. She agreed. She was given the power to select the eight people from across agencies who would comprise the team. She chose people from social work, the housing authority and the police force.

Members of the team spent 80 percent of their time with the family and only 20 percent on administration. Ella and the team worked together to stabilize her most immediate issue — negotiating away eviction notices. Then the team worked to improve inter-family dynamics so there wasn’t so much violence and screaming.

Cottam has designed other programs with a similar collaborative ethos. Backr is a program that takes people who are detached from the labor force and helps them join extended social networks where they can connect one another to job openings and develop skills. Circles is a program for the elderly. It brings together lonely seniors into small groups that are part social club, part concierge service and part self-help cooperative. Wellogram is a similar social structure for the chronically ill.

Basically, Cottam’s programs create villages within the welfare state. Her systems are not designed around individual clients, but around relational networks. People tend to have better outcomes when they are held accountable by a network of peers. Three-quarters of the smokers in Wellogram successfully quit, 44 percent lowered their blood pressure, 64 percent started work or went back to school.

The old legacy welfare programs were designed for people enmeshed in thick communities but who had suffered a temporary setback. Today many people lack precisely that web of thick relationship. The welfare state of the future has to build the social structures that people need to thrive. This is one way government can build community.