‘15 days of Economics’

Day 7: Why is there such a stigma around welfare benefits?

The UK government offers benefits to its citizens to ensure financial stability for people in need of support. However, with the constantly changing political situations, the benefits also have to change. These benefits are there to provide help financially and most frequently for the unemployed. Also, for people with low wages, disabilities, parents with children, who are retired or are caring for someone, benefits provide essential support.

It is important for the government to offer benefits as it ensures the productivity of their nation. For people that are inhibited to afford basic necessities due to their current situation, they rely on these payments. With these benefits, homelessness does not increase and poverty will decrease which is important for the country. These payments will also be reinvested into the economy therefore, the country benefits through the scheme.

In the UK 1.8million people heavily rely on this form of income for basic necessities. These benefits provides over 80% of their annual income. These payments support 64% of families in the UK. Some of these benefits include:

• Employment and Support Allowance (ESA)
• Income Support
• Housing Benefit
• Council Tax Support/Reduction
• Support with Mortgage Interest (SMI)
• Personal Independence Payment (PIP)
• Disability Living Allowance (DLA)

Unfortunately, there is a stigma around people that claim benefits. This is because the taxes that people pay go towards these payments and the media portray these claimants in a bad light. Typically, benefits claimers are seen as lazy and unambitious which is why people have a stigma around the subject. In actual fact, many of these people rely on benefits to ensure that they can survive paying bills and buying food. Job Seekers Allowance (JSA) is one form of benefits. People can receive between £58.90 - £74.35 a week. This payment allows people to get money whilst waiting to receive a job so the country can stay productive.

If the government were to scrap the benefits scheme, many people would struggle to live. Disabled people that cannot do certain jobs may not receive an income sufficient enough to ensure their wellbeing. Parents may not be able to support their children and may not be able to afford clothes or food for them. Finally, unemployed people will struggle considerably as they will not have an income for basic necessities. The financially stable with not be majorly effected by the people in poverty will.