New Welfare System in the UK - Essay Example

New welfare system in UK Assignment Executive summary The new welfare system is a project that is undertaken by the government asone of the ways to improve the social living standards of the entire public under the universal credit applied for by all citizens. The project will be fully funded by the central government and aims at maximizing the social welfare achieved by individuals. The project is expected to end in 2023 and will cost the government approximately 2.3 billion pounds with over 300, 000 claimants as beneficiaries at the end periods (Daily post, 2013). Introduction A welfare system is a platform that offers support to the deprived persons and clans within the society. Every country do have their system policies so as to make her citizens live with ease and access the basic requirements whether young, middle aged or at the old age. The UK government thus has developed a project in the welfare system under the universal credit plan of to help all groups in the society as the service takes care of both the unemployed, students, the working lot, hence providing a welfare of all kinds under one roof. However the project has experienced delays in its implementation due to arousing challenges in the key sectors. For instance, the IT department finds it difficult to bring together composite processor systems so as to enhance claimant registration, poor management of the project by officials and constant different political opinion from the political divide. Nevertheless the government is hopeful that the project will go through. Background of the project Welfare system is quiet important to any national government priority as it determines the nature of the future population hence key reforms must be put to it as people develop, grow in size and face various challenges in different economic times. Thus over the periods a number of reforms have taken place right from 20th to 21st centuries. In the early days the provision of welfare was on voluntary rather than state offered as mutually and friendly partners benefited each other. Thus as new governments came in, they developed refined ideas aiming at improving the general society. For example the Labor party members used the policy on welfare reforms as key tool in their campaigns. Hence the current government has embarked on reforms of the implementation of the unthinkable concepts generated by the earlier leaders. This is motivated by theories that a good welfare system determines the behavior of the public to any country as it helps shape actions and traits of the citizens, provides good motivation and moral will between the government and the public. Due to search pressing issues, the welfare system has been provided by the state rather than the private sector and as a result, the current government under the rule of the Conservatist party are making key reforms of the social welfare system (Manilla bulletin 2013). The Universal Credit system is a project pioneered in the reforms of the welfare which is accessible and affordable to all social class so that equity in social services is achieved and every member is taken care of. Project role and responsibility. The current government has taken a key role in the provision of social services to the country. Thus the new welfare system reforms are due to various needs required by the public (Daily post, 2010). Through provision of the system by the state, it ensures that key development programs are delivered through the central authority which makes it easy to monitor the set economic standards and priorities are met and affordable to the entire public. This centralization has been the key objective to the predecessors and successors central powers. The welfare system was seen as the best way to redistribute wealth among individuals in the economy. The political divides came together however much they had their differences to a common goal to enable their economy flourish and improve the living standards of their people. Togetherness hence made it easier to act and reform the system. Hence through equitable distribution, accessibility of the common services like education, health care provision and social facilities satisfaction could be provided to all public. The reforms were meant to reduce public expenditure. The cost of welfare was rising at a higher rate making it expensive for the common man. So instead of the welfare be provided by the public entirely, the private or the employer could be made to cater for their employees. By doing so, there was sharing of cost between the private and public sectors reducing government expenditure on the provision of welfare services. Moreover, it is a government objective to determine the level of provision of the basic facilities. The new welfare system was as seen as the ideal case to reduce the dependency between individuals and to the state. Over dependency placed a lot of pressure on the limited and scarce economic resources both at the household and at national level. Thus to resolve this issue there was a need to reform the welfare sector so that every individual could be able to afford for herself or himself whether working or not, young or old. This would see economic progression within the country and other development projects implemented without straining (Daily post, 2013). The new system was concerned with reducing child poverty and reducing unemployment rate by the year 2020. As a result of the increasing joblessness rate and rising population, it became important to take critical analysis of the situation so that economic levels could not deteriorate as poverty levels is a major concern to any. Planning for the project. The new welfare system under the Universal credit card is scheduled to end by 2023 and is estimated to cost approximately 2.3 billion pounds at its completion. Most of the funds will be directed towards investment in the general improvement of the IT system so as to concur with the modern technology that is capable to register all the claimants. Key government departments will be expected to undergo various reforms within their sectors to oversee the implementation successfully done. For instance the cabinet office will spearhead public reforms necessary that ensures government objectives are met. The treasury on the other tighten up its policy on financial collection so that the government can garner the much needed capital to implement the project as parliament enacts the primary legislation that facilitates the process (Manila bulletin 2013). The universal credit is due to be transferred in three phases. 1st phase begins in the October 2013 – Apri2014 with individual benefits like housing allowance, employ provision, tax acclaims being transferred to the universal credit and is expected to be the first beneficiary of the facility. 2nd phase entails April 2014 to December 2015 with the current applicants still given the priority. 3rd phase starts in December 2015 to December 2017 with the outstanding public crossing over to the new system. However due to the economic changes and constant political differences, the planned stages are set to take a bit longer than the scheduled time and is programmed to end at the end of 2023 (Western mail 2013). The project will be coordinated and implemented by the managers appointed by the government working hand in hand with the responsible administrative departments as the central authority takes an epicenter stage in the super visionary activities over the implementation periods. (Western mail 2013) Conclusion and recommendation The universal credit is such a great idea and one that is set to improve the welfare to the entire society. It is inclusive of all the population regardless of their status in the society henceforth beneficial to the current group and to the future generations. Through the project, poverty levels will be monitored and manageable, income distribution done in an equitable manner, unemployment rate greatly reduced and the citizens deriving maximum benefits from their personal investment whether in formal jobs or the informal. Such a noble activity will enhance easier collection of data on the various economic and social situations of the country. A good information provided by the development enables the government to make a fair balance on budgetary allocation to key sectors of the economy. Moreover the government will have an increased financial base which provides excess capital to other investment activities through the savings However, the Universal credit requires the government to reduce her expenditure on certain provision of the social welfare system as in the case of passing over the burden to the employer in both delivering medical care to the employees and making more contribution to their savings accounts. This may result to the rising prices from the company’s that deals in basic commodities as they would have a higher cost budget to deliver the service negatively affecting the basic goods industry since their objective is to maximize profit and would only sale to a price that is socially optimal thus government must see into ways to manage the situation. The new welfare system will only be beneficial if the citizens do not have to cough much from their pocket or strain so as to finance the service, then it will not be a welfare improvement anymore. The government should also see into appropriate ways to finance the project rather increasing the tax rate that may hurt the economy. In a nut shell it is a good initiative and wish the government well in their endeavors. References: Welfare Reforms Hurting Wales Most Vulnerable; AM: UK Policy Confused. (2013, December 9). Daily Post (Liverpool, England), p. 5. We Cant Duck Need to Change Benefits System MINISTER SAYS NEW WELFARE AFFORDABLE AND FAIRER. (2013, April 2). Western Mail (Cardiff, Wales) , p. 5. DAVID CAMERON: A NEW WELFARE CONTRACT.. (2010, April 20). States News Service, p. 4. Will New Government Welfare Reforms Affect You?. (2012, September 16). Louth Leader (Louth, England) , p. 3. UKs Welfare Capital Where 85pc Dont Work. (2011, October 19). Daily Mail, p. 4. Report Reveals New Face of UK Poverty. (2014, January 4). FARS News Agency, p. 3. UK Gets Tough on Welfare. (2010, November 14). Manila Bulletin, p. 3. We Can Make Work Pay in UK; Government Reveals Radical Welfare Reform. (2010, May 28). Daily Post Read More