Social Security Program in Britain, France and Germany - Literature review Example

Social Security Program for employed and unemployed in Britain Compared to France and Germany Introduction A social welfare system is designed and implemented program, a given state takes to help and provide for the needy people and families. Developed countries like Britain, France and Germany, the welfare programs are mostly funded by their respective government followed by other minor organisations like religious organisation, charities, intergovernmental groups and informal social organisations (Midgley1996, p.148). These welfare systems usually give out help individuals and families using programs like unemployment compensation, health care, food stamps, child care help and housing assistance. There exist different types systems adopted in different countries. Since the major elements of social security are the same in the three countries, the main objective will be to determine how the three states fund this program, the types of benefits offered, the challenges they face respectively and the differences and similarities of the program in each of the mentioned three countries. Social security program background According to Galaso (2008), Social security program are a programs initiated by a governments with expectations of promoting and improving the welfare of the society or its citizens. It involves putting up necessary requirements and measures that ensures access to sufficient and enough basic needs, that is food and shelter, to enhance good health and wellbeing for the entire populations a whole. According to Midgley (1996), the most potential affected parties include the sick, elderly, unemployed and children. The discussion also involves determination of how this social security is funded as it does not necessarily depend on state fund bringing out clearly the differences and similarities in these three states. Social security system in Britain Historical background suggests that social security initiative in Britain started in 1908 as a national insurance act where it stipulated the idea of sick pay, unemployment benefits for the wage earners, and maternity benefits. Since then there has been positive changes in the sector including the disability assessment to those individuals who cannot work, jobseeker’s allowance, housing allowance. Currently, the Britain pension scheme is built on three major blocks of social security for unemployed (Galaso 2008, p. 76): state pension, private pension schemes and company pension schemes. The following are the major types of benefits provided by the United Kingdom social security plan: Income support benefit plan These benefit plan scheme is usually available for individuals with a low income and salary. The beneficiaries are usually assed according to their salary and any extra income received, any capital addition that may have been received or the total saving that they have. A certain limit of saving is set so that if a beneficiary savings exceeds that limit he doesn’t qualify for these benefit plan (Midgley 1996, p. 33). The major restriction in this plan requires that those receiving the benefits must be sixteen years and above, they are not supposed to work for more than sixteen hours in one week and if they are married or partners, the other partner should not work for more than twenty four hours in a week (Gomez 2009, p. 89). Children benefit scheme Every person who is living permanently with a child below sixteen years in the united kingdom is eligible for the application of child benefit scheme (Spicker 2011, p. 143), in addition they can also apply for a child aged between sixteen years and nineteen if the child is still in school and lastly for those children between the age of sixteen and seventeen and has dropped out of school or training institution but is registered for work or training (Evans 2001, p. 153). For a parent or guardian to qualify for this type of benefit scheme, he/ she must be physically present with their child in Britain, has their main residence home in Britain, they are responsible for the child living standard and lastly they have legal right to live in united kingdom. Job seeker’s allowance scheme The benefits are paid to an individual who is jobless but is looking for some work. People who are eligible for this benefits should be eighteen years and above and under retirement age, they doesn’t have a job but can work and they should be looking for employment individuals who work for sixteen hours per week are also eligible. Housing allowance Individuals with low salary and income, irrespective of employment plus there saving but do not reach a certain limit or they are unable to pay rent they eligible for this type of benefits (Spicker 2011, p. 12). Other important benefit schemes include the invalid carers allowance, disability living allowance, state retirement pension plan and council tax benefit scheme offered by the state of Britain (Gomez 2009, p. 159). Challenges facing social security system of Britain The major challenges facing the social security system arise from different types of benefit schemes: firstly let us consider child benefit scheme whereby the challenge that arise in this class is that target is not clearly reached and there exist a horizontal redistribution as poor families in Britain are small and younger but this plan usually benefits to lager families, from individuals lucking children to individual with but it’s supposed to be vertical, it should redistribute from the poor single families to a well off family (Evans 2001, p. 198). Secondly, the problem of job seekers’ allowance is there is lack employers deliberately rule out some individuals and playing number games. Thirdly, it causes ‘poverty trap’ whereby if an individual income increases above the limit set by the authority they withdraw their benefit support hence dragging a person to his original status, this is evidenced in income support plan (Spicker 2011, p. 123). Social security system in Germany Germany has one of the best well developed social security in the world and its contained in the social code which contains twelve elements (Pennings 2003, p. 2). One being an employee in Germany he or she is certain about protection of big risk occurrences for instance the risk mostly covered are illness, public health care and nursing, unemployment, retirement benefits, occupational accidents, welfare aid among others since there are some subscription that you pay when you are working (Golynker 2006, p. 200). Almost all of the Germany population are participants in the social security system. It is mainly financed by taxes but majorly it is financed by deduction on employee payroll. The employees and employers mostly share the cost. Types of social security’s in Germany Health care policy It is approximated that 85% of Germany population have enrolled for the national health system cover which usually takes care of dental care, eye glasses, drugs, routine visits to the doctor and clinics, hospital admissions, x-rays and immunisation. Furthmore, in case of loss of amount due to illness there is arranged compensation (Golynker 2006 p 143). There is an exception where by employees making above four thousand Euros in a month can either retain the cover or look for another privately. Unemployed individuals can also enrol for state social security under given conditions. Individuals enjoying both state and private health plans are usually admitted in the long range nursing insurance policy covering all expenses that occur after old age and disability (Evans 2001, p. 95). Pension scheme The Germany retirement system was adopted to ensure that individuals can keep a pension insurance policy. Benefits are enjoyed after sixty five years and the pay-out is 67% of your total salary in your career life (Golynker 2006, p. 67). Germany has also adopted a system where foreign employees can receive their benefits away from home. Unemployment insurance scheme Those who receive these benefits are individuals who have remitted their premiums for the past one year for the past five years which is done by registration in labour office. The payments last between six months to two years depending on the age and years of service (Evans 2001, p.87). Accident insurance schemes The state offers accident insurance cover for protection and help in occasions or events at work; it covers also your family, funeral cost in case of death, costs of treatment and recuperation. Also premiums are submitted through the employer (Panta 2001 p 45). Social indemnity policies It usually covers the less fortunate and needy individuals in the society like orphans, war veterans, widows, disabled soldiers and people suffering from violent crimes. Challenges faced by social security of Germany The birth rates have declined hence the system is under pressure to compensate all the retirees whose number has increased steadily (Zacher 2011, p. 20). In fact the state is considering changing the retiring age from sixty five to sixty seven. Harmonisation of welfare systems and social policies within European Union is another problem facing the countries social security system (Gomez 2009, p. 89). Demographic population change is also affecting the system at large, the number of old people increases as the number of young contributors decrease hence straining the systems (Panta 2001, p. 129). Social security system in France The French social security system is outlined in the French social security welfare code and is divided into three major categories although there are other small independent braches: Farm regime General regime Self-employed regime1 This three branches offer same covers as it follows: Sickness, maternity, paternity, disability and death branch The social security code came up with statutory illness insurance cover takes care of Laboratory test immunization, rehabilitation, and other medical expenses involved. Premiums are charged every time for all individuals to use this type of scheme (Golynker 2006, p. 34). Universal health cover program It was introduced in 2000 issuing out two fundamental covers: for any individual who is stable and a regular resident within the state, a right to health insurance and free coverage without any cost nor fee to the needy and less fortunate with submission of resources (Pennings 2003, p. 46). Accident at work and occupational diseases scheme This statutory policy was designed to cub accidents on work and it involves three categories, in case the accident occurs when you are at working, travel accidents, and professional diseases (Golynker 2006, p.132). Other policies include the family policy that caters for your own family needs, old age policy in which retirees are compensated there benefits through pensions and lastly solidarity allowance for aged individuals plan is designed to benefit the aging individuals who lack pension. These schemes are usually funded by contributions deducted from wages and salaries. Also the budget steps in as it allocates some amount to the system hence funding it (Pennings 2003, p. 20). There are two challenges big challenges also facing the French social security system which includes demographic changes that is brought in by immigrants from other parts of the world, secondly, the increased number of aging population is not the same number as the contributing young population hence also putting pressure to the funding facilities. Similarities of the social security system between the three countries Funding and contribution As we have seen from the above there are two major types of contribution the state of specific countries and through contributions by deductions of their own wages and salaries. Demographic change Population change of the ageing population is not directly proportional contributing young population hence every country is straining to maintain its security system program. European Union pressure Every of the three state are facing pressure from European Union for harmonisation (Gestaltung 2003, p. 63). Hypothesis It was clear that in all cases, the state does not fund full this social security as most of the contribution is made through personal deduction and private contribution. Conclusion This essay has discussed three social security systems focusing on Britain system and comparing it to those system of Germany and French systems. It is evidenced that although the countries use different types of system but they are closely related since the major issues like health, retirement, old age, and sickness are being addressed by the three systems in general. Furthermore the challenges being experienced are almost the same. In this opinion we can suggest that no social security is better than the other as all have are facing the same challenges and are offering almost similar products. 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