The UK government needs to listen to Iceland’s progressive prime minister when she says robust welfare policies are the antidote to far-right extremism. And what’s more, investing in social infrastructure – in care, in health, in schools – is essential to driving the growth the government wants, says Amy Brooker of the Women’s Budget Group.
Last week, the UK government announced proposals to cut over £5bn worth of disability benefits. This comes on top of previous announcements to cut the winter fuel allowance, retain the two-child benefit cap, and reduce foreign aid to 0.3% of GDP.
But public spending cuts are not the answer to our economic and social challenges. Since 2010, austerity has significantly impacted living standards through an erosion of our essential public services, which has driven up poverty and health inequality. Significantly, women on low incomes, Black, Asian and Minority Ethnic women, Disabled women and families with children have been among the hardest hit.
How austerity helped to create the conditions for the rise of the far right
But as well as this social damage, austerity has contributed to the rise of far-right extremism and shifting attitudes toward gender equality. As economic inequality has deepened, a sense of disenfranchisement has grown, particularly among disillusioned young men.
Research shows that Gen Z boys and men are more likely than older generations to view feminism as harmful, with one in four UK males aged 16-29 believing it’s harder to be a man than a woman. Toxic masculinity and anti-feminist rhetoric, promoted through social media channels, have gained traction in this environment, exploiting frustration and economic anxiety to spread divisive ideologies. Austerity-driven policies have thus not only undermined social support systems but also provided fertile ground for the far-right to grow.
This is part and parcel of a global trend towards far-right populism that has undermined progress on gender equality, including LGBTQIA+ rights, access to abortion, and girls’ access to education.
Investment in welfare: the antidote to far-right extremism
Yet, while much of Europe and the US shift right, other countries are proving this trend is not universal. In Iceland, Kristrún Frostadóttir, the country’s third female prime minister and its youngest at 36, argues that combining progressive politics with robust welfare policies is ‘the antidote to right extremism’.
The UK is at a fork in the road. It is imperative that we walk the path being paved by Frostadóttir because the other way leads to a dead-end. That means prioritising investment in social infrastructure as well as physical infrastructure.
Why we need social, as well as physical infrastructure to drive growth while fostering a green and caring economy
And such investment is not just right, it’s necessary to deliver the strong economy ministers want. The UK government already recognises that investing in physical infrastructure is an engine for growth. But economic growth is also being constrained because people cannot access adult social care, timely medical treatment, or afford their children’s nursery fees, reinforcing barriers to paid employment for those who can and want to work as a result. These services – our social infrastructure – are at breaking point.
‘Research shows that spending on care creates 2.7 times as many jobs as the same investment in construction while producing 30% fewer emissions.’
The government seems to want to wait for the economy to grow before investing in services, but this misses a critical fact: public services, including those focusing on care provision, are the backbone of a strong economy, not just a consequence of it. History shows the value of such investment: in 1945, the UK built the welfare state while facing unprecedented debt, recognising that a healthy, supported population is the foundation of a thriving economy.
Today, the same principle applies. Research shows that spending on care creates 2.7 times as many jobs as the same investment in construction while producing 30% fewer emissions. Prioritising investment in care, education, and health will not only drive employment and productivity but also build a fairer, more inclusive economy. A more equitable society is less susceptible to divisive ideologies, mitigating the appeal of far-right movements.
Achieving this means changing how we raise and spend money – expanding and strengthening social infrastructure alongside decarbonising physical infrastructure will create a more resilient, inclusive, and sustainable economy. And this needs to be funded by fair, progressive taxation whereby individuals and companies make their proportionate financial contribution to a well-functioning society across generations.
The choice: an inclusive or divided society?
With geopolitics shifting rapidly, and as the UK is still grappling with the cumulative impact of Covid-19, Brexit, austerity, and the cost-of-living crisis, the UK government must choose whether it will invest in a green and caring economy that can be an antidote to far-right extremism – or keep going with funding cuts that risk stoking further inequality, and division.
Investment in social infrastructure, such as childcare, social care, and healthcare, is crucial not only for building a fairer economy but for addressing the inequality that far-right movements thrive on. The decisions made today will shape our economy, our society, and the future of gender equality. The path we take matters, and we must choose the one that leads to greater equality, inclusion, and economic justice for everyone.
You can read our detailed policy solutions for building a green and caring economy in this Spending Review submission
Author
The Women’s Budget Group is the UK’s leading feminist economics think tank. We are a research, advocacy and training organisation advancing gender equality in policymaking through feminist approaches to economics. Working nationally and internationally, we build and exchange the evidence, data, knowledge, capacity and will for change.
This is the fourth and final blog in our March series for International Women’s Day 2025. Catch up on the rest of the series here.