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Social Welfare System
A network of programs created to assist a country’s citizens at various stages of their lives
What is a Social Welfare System?
A social welfare system is a network of programs created to assist a country’s citizens at various stages of their lives. The system usually arises from the efforts of a government or organizations to provide social welfare. It’s an ongoing process meant to care for the specific needs of society. Through social welfare programs, the citizens are shielded from the financial insecurities of life.
As you will see below, a social welfare system is composed of a variety of different programs. Some are designed to take care of the elderly, others the unemployed, mothers, and more.
Summary
- A social welfare system is a scheme for providing financial aid to individuals or families in need in a society.
- Often funded in whole or in part by the government, social welfare programs are designed to cover costs of food, housing, healthcare, childcare, among others.
- Most social welfare systems have a list of eligibility requirements for individuals wishing to receive financial support.
Understanding Social Welfare Systems
The very first laws relating to social welfare were implemented in Germany back in the 1880s. Since then, many countries have embraced similar programs to help their citizens with different needs. Although social welfare programs are enacted differently depending on the country, they share some similarities.
For one, the eligibility conditions for the programs are relatively the same. Often, individuals wishing to receive social welfare must prove that they’re not capable of meeting their needs on their own. Two, the nature of risks, which the citizens are insured against, are also similar.
Over time, enacting a social welfare system has been regarded as one of the government’s key responsibilities. The consensus in most countries is that social welfare should be awarded to all individuals who cannot care for themselves for one reason or another. In relation, social welfare is given as a matter of right instead of need.
How Does a Social Welfare System Work?
Social welfare is provided to citizens through various programs. Each of the programs addresses a particular issue or need. Listed below are a few examples of social welfare programs:
1. Medical Care Programs
They are one of the most contentious and sophisticated programs of a social welfare system. The medical care benefits range from monetary compensation for lost wages to coverage for medical bills and ongoing treatment.
When it comes to eligibility, the requirements vary from one country to another. In some, healthcare is awarded to everyone. However, in others, it is only given to workers of participating employers.
Another area where medical care programs differ entails the form of financing. In some countries, citizens contribute privately, while the government solely funds such projects in other countries.
The providers of medical care range from private practitioners to government-appointed healthcare professionals. In the case of private practitioners, they may be paid directly by the government or the patient. If paid by the patient, the citizen is later reimbursed by the government to foot the medical bill.
4. Unemployment Benefit Programs
Unlike medical care, unemployment benefit programs are more common in industrialized countries than in developing nations. The projects involve providing financial aid to previously employed individuals but those who’ve been rendered jobless through no fault of their own.
However, one condition is that the beneficiary must be willing and capable of working. As such, the monetary compensation is given for just a short period.
3. Family Allowance Benefits
With the family allowance welfare program, the government financially supports families with a predetermined minimum number of children. Some countries offer the program to all families, in which case the beneficiary has a steady income source. Others, however, implement the program alongside some other form of assistance, such as unemployment benefits.
4. Work-Injury Compensation
Nearly every country has some form of work-injury remuneration program. It is designed to cover workers of companies of a particular size. Furthermore, the welfare service is often funded by the employer.
Employees who are eligible for such a program receive financial support for their medical treatments. They may also be compensated for lost wages up to a certain extent; they can range from 50% to 75% of the actual salary.
5. Public Aid
Public aid is more like a surplus program, and it’s designed to offer aid to individuals not covered by other social welfare services. Typical beneficiaries for the assistance include:
- The elderly who are not included in the employment-related program
- The blind or physically impaired who are not covered by the work-injury
- Needy families with dependent children
Wrap Up
A social welfare system can be defined as a set of programs designed to address a society’s needs. How the programs are implemented varies from one country to another. However, you will find that most fall under one of the following classifications – healthcare, public assistance, unemployment, family allowance, and work-injury compensation.
Related Readings
CFI offers the Commercial Banking & Credit Analyst (CBCA)™ certification program for those looking to take their careers to the next level. To keep learning and advancing your career, the following resources will be helpful:
