In an article for today's Guardian Deborah Orr addresses the breakdown of consensus in politics over the welfare state: http://www.theguardian.com/education/2014/jun/20/dont-blame-poor-children-for-poor-education
She blames "Thatcherism" for this breakdown, but does not ask why the Conservatives became so disillusioned with the welfare state.
To understand this she needs to look at the previous two decades and the experience of mass immigration in which assets belonging to the community were allocated to new arrivals on the basis of "need" not on the basis of the contribution they had made via the National Insurance system.
Who on earth is going to pay higher taxes to provide Bangladeshis and Jamaicans with social housing and welfare payments? To provide health care and education for the larger-than-average families of East African asians? To give translation services to eastern Europeans?
No-one is keen on paying for the rollercoaster social revolution of mass immigration.