BRITAIN’s welfare state, once a source of pride, is now “mediocre” compared to those of other European nations, according to think tank International Longevity Centre UK (ILC-UK).

In a report published yesterday it said that, with 15 million people at risk of becoming destitute, Britain now ranks 15th out of 23 countries on its poverty and social exclusion index.

With a rapidly ageing population, the welfare system needs to be reformed to become a “new Beveridge,” ILC-UK said, referring back to economist William Beveridge’s 1942 Social Insurance and Allied Services report, which served as the basis for the post-World War II welfare state that was established by Labour three years later.

The safety net must be cast wider so that those earning less than 60 per cent of the median wage can be helped out of poverty, the think tank said.

As well as low pay, people in Britain have to put up with shoddy housing. ILC-UK’s housing quality index is calculated by age group of tenants and leaseholders on affordability, rates of overcrowding, housing deprivation such as leaking roofs and damp, and proportions of homeowners.

The report said Britain ranks 14th, with those aged 18 to 24 facing the heaviest housing cost burdens compared to other age groups.

The country also ranks an average 11th for “state effectiveness,” which takes into account being ranked ninth for health, ninth for access to education and fifth for fairness between generations.

The think tank urges Britain to learn from the welfare strategies of higher-ranked countries, such as focusing on social protection for families, higher participation of older women in the labour force and investing in substantial health expenditure.

It warns that “silver welfare,” the strategy of focusing spending on social protection for old age, is the only strategy consistently associated with bad outcomes.

Research fellow Dr Cesira Urzi Brancati said: “Given that the UK is currently the fifth largest economy in the world, we might expect it to rank higher than 15th in Europe for social protection spending, and expect it to allocate spending more evenly across the lifecycle.

“As the UK’s population is ageing rapidly, future governments need a coherent strategy to deliver a welfare state which guarantees the best possible provision for the largest number of people across the UK.

“This strategy cannot be based on what is politically expedient; instead, future governments must base these judgements on evidence.

“Looking at approaches to social security, health, housing and education across Europe to identify successful strategies is a good place to start, particularly in times of such uncertainty.”