Day 7: The Benefits system in the UK
What are benefits?
Benefits are payments which the government issues to specific people with low incomes or specific needs. Help is given to people who are disabled, out of work, bereaved, carers or pregnant. In the UK as of 2019, 20 million people claimed DWP (Department for Work and Pensions) benefits. The reason the government has a benefit system and is providing so much financial support to members of the population is not only to protect these people who can’t work from poverty but also helps maintain a stronger economy. By reducing poverty and increasing income through higher welfare benefits, inequality will be reduced and an overall higher standard of living will be achieved. Hence boosting the economy and improving society overall. Children can also claim benefits, this is called Child Benefits. A child can claim £21.05 per week, amounting to £1094.60 each year. However for families with multiple children, only the first child receives the weekly payment of £21.05. Each additional child in the family will receive a subsidiary £13.95.
Job Seekers Allowance and Universal Credit
Jobseeker’s Allowance (JSA) in the UK is a personal allowance paid each week. Depending on the age of the person you are eligible to a difference amount of income. Between the ages 18–24: £58.90, age 25+:£116.80. To qualify for this benefit one must be actively seeking employment (suggested by the name) and one must be capable of work. This is unlike child benefits as the person must be over 18 years of age and be under *State Pension. It is possible to apply for JSA while employed, however it cannot be full time work (no more than 16hrs/week). From a 2018 study Birmingham, Dundee and Newcastle were the highest JSA claiming cities in the UK. All three of which had a greater than 4% share of the cities population claiming JSA.
Moving onto monthly payments, Universal Credit helps with living expenses. This is an option for low income/out of work members of the population. Standard allowance differs depending on the circumstance of the person claiming. For single (without partner) people under the age of 25 one would receive £342.72/month (approx £4.1k each year). For people in a couple the monthly standard allowance drops to £488.59/month (for both members of the couple). Meaning that each person really only receives £244.295. People over the age of 25 will receive a high standard allowance, similar to JSA.
Abolishing benefits
If the government hypothetically decided to cut welfare funding and ceased providing benefits to the 20million people who are in need of it, I would oppose this decision. However not solely because these people need money to live on. As mentioned previously benefits can positively impact the country; from an economic and social perspective. By distributing money to support these lower income groups of the population, the wealth gap is marginally minimised. While not providing a solid, permanent solution to all who claim benefits, for many it provides financial support for these people while they get back on their feet and find jobs, which in turn will aid the economy. While for others who cannot work (the disabled or pregnant) it is a necessary support system which the government seems almost morally obliged to provide. While some may argue that these benefits are being payed for by the taxpayers, I think that it is an obligatory sacrifice. A government which supports the whole population and makes an effort to increase living standards for those less fortunate or of lower income, will simultaneously help the economy as a whole.
