The Welfare Benefits System
Benefits are a massively controversial subject among British tax payers, today i’m going to be looking at what welfare benefits are, why they exist and what has led to their controversial image in the media.
What Are Welfare Benefits?
Benefits and tax credits are payments from the government to members of the public with low incomes or other special needs. They can be claimed by those who are:
- unemployed
- low income
- sick or disabled
- pregnant or have children
- carers
- or have been bereaved
How much money do people receive when they claim benefits?
In 2017 the UK government spent £264bn pounds on welfare, this makes up around 34% of government spending.
These statistics are surprising given that unemployment benefits are often portrayed as controversial in the media.
In the Uk the average job seekers allowance is dependent on age and other circumstances as show in the graph below.
For those claiming child benefits the average weekly pay is £21.05 per week for a first child and £19.35 per week for any further children. This does seem a low income in comparison to the job seekers benefit when taking into account that somebody claiming these benefits has to provide for themselves and their child.
Universal credit is defined by the government as payment to help with living costs, this is paid monthly, and is available to those who are on low income or unemployed. It was recently introduced to replace the following six benefits:
- Housing Benefit
- Income Support
- income-based Jobseeker’s Allowance (JSA)
- income-related Employment and Support Allowance (ESA)
- Working Tax Credit
- Child tax credit
It was introduced to bring ‘“fairness and simplicity to the benefits system”, however it has received criticism for multiple shortcomings an example being late payments to families struggling to afford food.
Do We Need Welfare Benefits?
There are multiple arguments both for and against a welfare state, I will briefly cover the main arguments of both sides and then make a decision on wether we need welfare benefits.
The first argument against welfare benefits is that the system is too easy to abuse. That the ability to claim benefits discourages people from working as they have a small but reliable source of income to fall back on. This is said to reduce the productivity of ‘low skilled’ workers and harm the economy. I do not agree with this statement as in the UK, individual benefits are not large enough for those out of work to live in a desirable lifestyle and most would rather have a job for a better source of income and potential for career progression.
The next major argument against benefits is that it’s a short-sighted system that does not provide with the opportunity for future self sustainment without benefits, through education on how to increase their employability and earning potential. I do believe this is a major issue as the ultimate goal of the government should be to reduce the amount of people who need benefits which would have great social and economic benefits for the nation.
Lastly it could be argued that it is psychologically unhealthy for those on benefits as they give individuals a lack of confidence and self esteem around their ability to secure a job. To me, this is also a relevant argument and feeds into the previous statement that we need to provide those claiming benefits with the tools to better their lives.
On the other side of the spectrum benefits create a risk-sharing economy where the individual is protected by the majority. This greatly reduces the poverty rate and can be seen as beneficial to the economy as a whole.
To counter the argument that benefits disincentivize working, the majority of people on benefits were shown to be physically incapable of doing so. This makes them an important part of caring for those in society who cannot do so for themselves. A socially noble system.
Finally, it provides opportunities for those living on low income and helps prevent the cycle of poverty in families. This is also beneficial for the nation as future generations become less reliant on government support.
In conclusion, I would not support the removal of the benefits system in the UK and deem it an important part of our nation. However, I would support alterations to the system that place a greater focus on increasing education and confidence to create more employable citizens.
