The Welfare System

Question 1

Aim

Answer 1

Introduce support for those unable to work

= principle of need & entitlement

Question 2

Department for work & pensions

Answer 2

• 30% of overall budget for public spending
• Intends to provide “a basic standard living for those in financial need”
• Social security bill
  = Largest gov expenditure in Britain

Question 3

HM Revenue & Customs

Answer 3

• Led to intro of living wage an hourly rate
  = Updated annually, paid voluntarily by employers
• Tax credits criticised for ‘subsidising’ employers to pay only min wage & use zero-hour contracts
• Provides minimum income guarantees for others including pensioners
• Raise taxes to fund benefits
  = Payments to families & others via tax credit

Question 4

Reviews & Appeals over benefits system

Answer 4

First level
= Appeal to “local decision makers” from relevant bodies

Next level
= Social security & child support tribunals

After that
= Any appeal can only be made on a “point of law”

Question 5

Types of Pension - State

Answer 5

Contributory benefit for those with over 30 years NI contributions

Question 6

Types of Pension - Stakeholder

Answer 6

For those without occupational pension

Gov pays monthly contributions

Question 7

Types of Pension - Single-tier

Answer 7

Those retiring after 6th April 2016 based on 35 years’ NI contributions

Question 8

Types of Pension - Additional State

Answer 8

Min income guarantee for some benefit claimants, including carers

Question 9

Universal Credit

Answer 9

Aims
= Cap benefits at £20,000 max per household
= Cap social security budget at £122bn per year

Question 10

Universal Credit Benefits phased out

Answer 10

Jobseekers Allowance
= Adults working 16hours or less per week & actively seeking full time work

Income Support
= Non-contributory benefit 16+ on low incomes & not in full time employment

Employment & Support Allowance
= For the sick or disabled
= ESA offers financial support & personalised help

Personal Independence Payment
= Helps with extra costs of long-term ill health/disability
= Aged 16-64

Question 11

Universal Credit Criticism

Answer 11

• Risks putting 1mil more children into poverty
• Adds demand on food banks
• Hard to navigate application system
• Monthly a waiting 5 weeks

Question 12

Other Benefits

Answer 12

• Statutory sick pay
• Statutory maternity/paternity pay
• Winter fuel payment for retired
• Free buses over 60s

Question 13

‘Triple Lock’

Answer 13

• Pension guarantee 2010

Guarantee to increase state pension every year by:

• Average Earnings
• Min of 2.5%
• Inflation

Question 14

‘Triple Lock’ - Gov removal

Answer 14

• 2060 cost will fall to 8.1% of GDP due to single-tier state pension
• Cost of state pension due to increase to 8.5% by 2060
• Expensive (£45bn over next 15 years)

Question 15

Retirement & State Pensions

Answer 15

Pensions act 2011

= Moves to change retirement age to 66 by 2020, 67 by 2018 and later 68

Question 16

Retirement & State Pensions

Answer 16

Budget 2012
= Retirement age would be linked to life expectancy
= Moves to “auto-enrolment” in occupational pension schemes

Question 17

Retirement & State Pensions

Answer 17

Welfare reform & work act 2016

= Plans to cut disabled people’s benefits by £30 a week

Question 18

Contributory Benefits

Answer 18

Benefits available to people who have sufficient National Insurance (NI) contributions

Question 19

Non-Contributory Benefits

Answer 19

Needs-based payments, not based on NI contributions

Question 20

Child Benefit

Answer 20

Used to be universal, now income dependent, tax charge if earn more than £50,000

Question 21

GDP

Answer 21

Total profit from all goods & services generated in Britain in the financial year

Question 22

Universal benefits

Answer 22

Given to those who fit certain criteria, regardless of income