Government responses to social and economic inequality
What is the welfare state?
What is the history of the UK's welfare state?
The UK's A state (or country) where the government provides welfare benefits, such as education, health care and unemployment payments, to its population free at the point of use, although they are paid for by general taxation. has its roots in the proposals put forward by the politician and economist Lord Beveridge during World War Two.
Following the destruction caused by the war, Britain needed to rebuild. There was seen to have been a collective national sacrifice to win the war, so it was felt there should be a collective national 鈥榮afety net鈥, paid for by taxation and Deductions from gross pay which are paid to HMRC towards some benefits, including the state pension. contributions, to support people in need, such as children, the unemployed, the elderly and those who were sick.
How has the welfare state changed?
Successive governments have aimed to ensure that everyone has the basic needs in life met 鈥 sufficient income, housing, education and health care, with support lasting from 鈥渢he cradle to the grave鈥. However when the welfare state was introduced, no-one could foresee how different UK society would be today.
- Life expectancy for men and women has risen dramatically. This has implications for the cost of pensions, health care and social care. In 2023/24, according to Department of Work and Pensions figures, the UK spent 拢134.8 billion on pensioner benefits alone.
- With a growing and ageing population plus developments in healthcare services including drugs and transplant surgery, the demand and cost for healthcare has increased hugely. In 2023-24 health spending in the UK was estimated at 拢245 billion.
- There has been a large growth in the number of working-age adults who for a variety of reasons are unable to take up paid employment.
Video - Economic inequality
Watch this video to learn about the various provisions the government has in place for specific groups.
Targeted help for specific groups
How are welfare services funded?
All developed countries across the world have experienced challenges in finding enough revenue (money) to fund welfare services. Scotland and the UK are no different. As well having to find more revenue for an ageing population, healthcare and support for working-age adults and their families who are not able to work, there are also challenges in dealing with increasing levels of substance abuse, greater obesity rates and the increased expectations of society.
While most people in the UK support the idea of a welfare state, in some cases there is tension between those who work and pay taxes and those who do not work and receive support from the welfare state for example state benefits. In UK-wide national surveys, around three-quarters of the people responding consistently support the idea of government spending more on the NHS to improve services. However, when it comes to the government spending more money on welfare benefits, only around one in five people consistently support.
2023 (Feb. unless stated) UK statistics:
Current (2021) UK statistics: -
- 4.3% of people in the UK were unemployed (July 2023)
- 12.6m people were receiving the State Pension (up 140,000 from previous year)
- Life expectancy for babies born in Scotland 2019-2021 was 76.6 for men and 80.8 for women
- There were 3.1m adults in the UK claiming Personal Independence Payment (PIP), with 1.6m receiving Employment Support Allowance (ESA)