Welfare. It’s a word that has become increasingly provocative – for those who argue welfare cuts have created unnecessary hardship, and those who think welfare is an unaffordable burden for the taxpayer. But what do we really mean by welfare, and why do we have it?
First up is a principle of providing extra support to those with particular disadvantages – for example, the Personal Independence Payment is available to anyone (regardless of income) with a significant disability.
Second is the concept of insurance. Be that against unemployment, becoming too sick to work, or just old age. The benefits paid under this heading are not a complete form of insurance, however, as they are mostly a fixed amount. A typical earner would find relying on just contributory benefits a bit of a shock to their bank balance.
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