"Social security", "Social welfare", and "Social programs" redirect here. For specific systems named "Social Security" and other uses, see Social Security
. For models of societal well-being, see Social welfare function
. For a broader sense of social programs, see Social services
A family support centre in Saint Peter Port, Guernsey, which provides assistance to families with children.
to the poor, abbey of Port-Royal des Champs c. 1710.
In the Islamic world, Zakat
(charity), one of the Five Pillars of Islam
, have been collected by the government since the time of the Rashidun caliphUmar
in the 7th century (634 CE), and used to provide income for the needy, including the poor
, and the disabled. According to the Islamic jurist Al-Ghazali
(Algazel, 1058–111), the government was also expected to store up food supplies in every region in case a disaster
(See Bayt al-mal
for further information.)
Likewise, in Jewish tradition, charity (represented by tzedakah
) is a matter of religious obligation rather than benevolence. Contemporary charity is regarded as a continuation of the Biblical Maaser Ani
, or poor-tithe
, as well as Biblical practices, such as permitting the poor to glean the corners of a field and harvest during the Shmita
Modern welfare states include Germany, France, the Netherlands,
as well as the Nordic countries
, such as Iceland, Sweden, Norway, Denmark, and Finland
which employ a system known as the Nordic model
. Esping-Andersen classified the most developed welfare state systems into three categories; Social Democratic, Conservative, and Liberal.
A report published by the ILO in 2014 estimated that only 27% of the world's population has access to comprehensive social security.
The World Bank
's 2019 World Development Report
argues that the traditional payroll-based model of many kinds of social insurance are "increasingly challenged by working arrangements outside standard employment contracts".
Welfare can take a variety of forms, such as monetary payments, subsidies
, or housing assistance. Welfare systems differ from country to country, but welfare is commonly provided to individuals who are unemployed
, those with illness
, the elderly
, those with dependent children, and veterans
. Programs may have a variety of conditions for a person to receive welfare:
- Social insurance, discussed previously
- Means-tested benefits, financial assistance provided for those who are unable to cover basic needs, such as food, clothing and housing, due to poverty or lack of income because of unemployment, sickness, disability, or caring for children. While assistance is often in the form of financial payments, those eligible for social welfare can usually access health and educational services free of charge. The amount of support is enough to cover basic needs and eligibility is often subject to a comprehensive and complex assessment of an applicant's social and financial situation. See also Income Support.
- Non-contributory benefits. Several countries have special schemes, administered with no requirement for contributions and no means test, for people in certain categories of need: for example, veterans of armed forces, people with disabilities and very old people.
- Discretionary benefits. Some schemes are based on the decision of an official, such as a social worker.
- Universal or categorical benefits, also known as demogrants. These are non-contributory benefits given for whole sections of the population without a means test, such as family allowances or the public pension in New Zealand (known as New Zealand Superannuation). See also the Alaska Permanent Fund Dividend.
In developing countries, formal social security arrangements are often absent for the vast majority of the working population, in part due to reliance on the informal economy
. Additionally, the state's capacity to reach people may be limited because of its limited infrastructure and resources. In this context, social protection
is often referred to instead of social security, encompassing a broader set of means, such as labour market intervention
and local community-based programs, to alleviate poverty and provide security against things like unemployment.
Prior to 1900 in Australia, charitable assistance from benevolent societies, sometimes with financial contributions from the authorities, was the primary means of relief for people not able to support themselves.
The 1890s economic depression and the rise of the trade unions and the Labor parties
during this period led to a movement for welfare reform.
In 1900, the states of New South Wales and Victoria enacted legislation introducing non-contributory pensions for those aged 65 and over. Queensland legislated a similar system in 1907 before the Australian labor Commonwealth government led by Andrew Fisher
introduced a national aged pension under the Invalid and Old-Aged Pensions Act 1908. A national invalid disability pension was started in 1910, and a national maternity allowance was introduced in 1912.
During the Second World War, Australia under a labor government created a welfare state
by enacting national schemes for: child endowment in 1941 (superseding the 1927 New South Wales scheme); a widows’ pension in 1942 (superseding the New South Wales 1926 scheme); a wife's allowance in 1943; additional allowances for the children of pensioners in 1943; and unemployment, sickness, and special benefits in 1945 (superseding the Queensland 1923 scheme).
Canada has a welfare state
in the European tradition; however, it is not referred to as "welfare", but rather as "social programs". In Canada, "welfare" usually refers specifically to direct payments to poor individuals (as in the American usage) and not to healthcare and education spending (as in the European usage).
Generally speaking, before the Great Depression
, most social services were provided by religious charities and other private groups. Changing government policy between the 1930s and 1960s saw the emergence of a welfare state, similar to many Western European
countries. Most programs from that era are still in use, although many were scaled back during the 1990s as government priorities shifted towards reducing debt
Danish welfare is handled by the state through a series of policies (and the like) that seeks to provide welfare services to citizens, hence the term welfare state. This refers not only to social benefits, but also tax-funded education, public child care, medical care, etc. A number of these services are not provided by the state directly, but administered by municipalities
, regions or private providers through outsourcing. This sometimes gives a source of tension between the state and municipalities
, as there is not always consistency between the promises of welfare provided by the state (i.e. parliament) and local perception of what it would cost to fulfill these promises.
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The Central Government of India's social programmes and welfare expenditures are a substantial portion of the official budget, and state and local governments play roles in developing and implementing social security policies. Additional welfare measure systems are also uniquely operated by various state governments. The government uses the unique identity number (Aadhar) that every Indian possesses to distribute welfare measures in India. As of 2020, the government's expenditure on social programme and welfare (direct cash transfers, financial inclusion, benefits, health and other insurances, subsidies, free school meals, rural employment guarantee), was approximately fourteen lakh crore
rupees ($192 billion), which was 7.3% of gross domestic product (GDP).
is a strong value of the French Social Protection system. The first article of the French Code of Social Security describes the principle of solidarity. Solidarity is commonly comprehended in relations of similar work, shared responsibility and common risks. Existing solidarities in France caused the expansion of health and social security.
The welfare state has a long tradition in Germany dating back to the industrial revolution
. Due to the pressure of the workers' movement in the late 19th century, Reichskanzler Otto von Bismarck
introduced the first rudimentary state social insurance scheme
. Under Adolf Hitler
, the National Socialist Program
stated "We demand an expansion on a large scale of old age welfare." Today, the social protection of all its citizens is considered a central pillar of German national policy. 27.6 percent of Germany's GDP
is channeled into an all-embracing system of health, pension
, longterm care and unemployment insurance
, compared to 16.2 percent in the US. In addition, there are tax-financed services such as child benefits (Kindergeld
, beginning at €
192 per month for the first and second child, €198 for the third and €223 for each child thereafter, until they attain 25 years or receive their first professional qualification),
and basic provisions for those unable to work or anyone with an income below the poverty line
Since 2005, reception of full unemployment pay (60–67% of the previous net salary
) has been restricted to 12 months in general and 18 months for those over 55. This is now followed by (usually much lower) Arbeitslosengeld II (ALG II)
, which is independent of previous employment (Hartz IV
As of 2020, under ALG II, single adults receive up to €432 per month plus the cost of 'adequate' housing. ALG II can also be paid partially to employed persons to supplement a low work income.
The Italian welfare state's foundations were laid along the lines of the corporatist
model, or of its Mediterranean
Later, in the 1960s and 1970s, increases in public spending and a major focus on universality brought it on the same path as social-democratic
systems. In 1978, a universalistic welfare model was introduced in Italy, offering a number of universal and free services such as a National Health Fund.
Social welfare, assistance for the ill or otherwise disabled and for the old, has long been provided in Japan
by both the government and private companies. Beginning in the 1920s, the government enacted a series of welfare programs, based mainly on European models, to provide medical care and financial support. During the postwar period, a comprehensive system of social security was gradually established.
The 1980s, marked a change in the structure of Latin American
social protection programs. Social protection embraces three major areas: social insurance, financed by workers and employers; social assistance to the population's poorest, financed by the state; and labor market regulations to protect worker rights.
Although diverse, recent Latin American social policy has tended to concentrate on social assistance.
The 1980s, had a significant effect on social protection policies. Prior to the 1980s, most Latin American countries focused on social insurance policies involving formal sector
workers, assuming that the informal sector
would disappear with economic development
. The economic crisis of the 1980s and the liberalization
of the labor market
led to a growing informal sector and a rapid increase in poverty and inequality. Latin American countries did not have the institutions and funds to properly handle such a crisis, both due to the structure of the social security system, and to the previously implemented structural adjustment
policies (SAPs) that had decreased the size of the state.
New Welfare programs have integrated the multidimensional, social risk management
, and capabilities approaches into poverty alleviation. They focus on income transfers and service provisions while aiming to alleviate both long- and short-term poverty through, among other things, education, health, security, and housing. Unlike previous programs that targeted the working class, new programs have successfully focused on locating and targeting the very poorest.
The impacts of social assistance programs vary between countries, and many programs have yet to be fully evaluated. According to Barrientos and Santibanez, the programs have been more successful in increasing investment in human capital
than in bringing households above the poverty line. Challenges still exist, including the extreme inequality levels and the mass scale of poverty; locating a financial basis for programs; and deciding on exit strategies
or on the long-term establishment of programs.
The economic crisis of the 1980s led to a shift in social policies, as understandings of poverty and social programs evolved (24). New, mostly short-term programs emerged. These include:
Major aspects of current social assistance programs
- Conditional cash transfer (CCT) combined with service provisions. Transfer cash directly to households, most often through the women of the household, if certain conditions are met (e.g. children's school attendance or doctor visits) (10). Providing free schooling or healthcare is often not sufficient, because there is an opportunity cost for the parents in, for example, sending children to school (lost labor power), or in paying for the transportation costs of getting to a health clinic.
- Household. The household has been the focal point of social assistance programs.
- Target the poorest. Recent programs have been more successful than past ones in targeting the poorest. Previous programs often targeted the working class.
- Multidimensional. Programs have attempted to address many dimensions of poverty at once. Chile Solidario is the best example.
New Zealand is often regarded as having one of the first comprehensive welfare systems in the world. During the 1890s a Liberal government adopted many social programmes to help the poor who had suffered from a long economic depression in the 1880s. One of the most far reaching was the passing of tax legislation that made it difficult for wealthy sheep farmers to hold onto their large land holdings. This and the invention of refrigeration led to a farming revolution where many sheep farms were broken up and sold to become smaller dairy farms. This enabled thousands of new farmers to buy land and develop a new and vigorous industry that has become the backbone of New Zealand's economy
to this day. This liberal tradition flourished with increased enfranchisement for indigenous Maori
in the 1880s and women. Pensions for the elderly, the poor and war casualties followed, with State-run schools, hospitals and subsidized medical and dental care. By 1960, New Zealand was able to afford one of the best-developed and most comprehensive welfare systems in the world, supported by a well-developed and stable economy.
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Government pension payments are financed through an 18.5% pension tax on all taxed incomes in the country, which comes partly from a tax
category called a public pension fee (7% on gross income
), and 30% of a tax category called employer fees on salaries (which is 33% on a netted income). Since January 2001, the 18.5% is divided in two parts: 16% goes to current payments, and 2.5% goes into individual retirement accounts
, which were introduced in 2001. Money saved and invested in government funds, and IRAs
for future pension costs, are roughly five times annual government pension expenses (725/150).
Viewing Swedish welfare more broadly, it emerges as highly-rated in many standard international comparisons of welfare or well-being (e.g. World Economic Forum 2020).
However, some Nordic-based welfare and gender researchers have argued that such assessments, based on conventional welfare/well-being criteria, may to some extent over-privilege Sweden (and other Nordic countries) in terms of, for instance, gender and racial equality. For example, they suggest that if one takes a broader perspective on well-being incorporating issues associated with bodily integrity or bodily citizenship (Pringle 2011),
then some major forms of men’s domination and/or white privilege can be seen to still stubbornly persist in the Nordic countries, e.g. business, violence to women, sexual violence to children, the military, academia and religion (Hearn and Pringle 2006; Hearn et al. 2018; Pringle 2016).
UK Government welfare expenditure 2011–12
The United Kingdom has a long history of welfare, notably including the English Poor laws
which date back to 1536. After various reforms to the program, which involved workhouses
, it was eventually abolished and replaced with a modern system by laws such as National Assistance Act 1948
In more recent times, comparing the Cameron–Clegg coalition
's austerity measures
with the Opposition
's, the Financial Times
commentator Martin Wolf
commented that the "big shift from Labour ... is the cuts in welfare benefits."
The government's austerity programme, which involves reduction in government policy, has been linked to a rise in food banks. A study published in the British Medical Journal
in 2015 found that each one percentage point increase in the rate of Jobseeker's Allowance
claimants sanctioned was associated with a 0.09 percentage point rise in food bank use.
The austerity programme has faced opposition from disability rights groups for disproportionately affecting disabled people. The "bedroom tax"
is an austerity measure that has attracted particular criticism, with activists arguing that two-thirds of council houses affected by the policy are occupied with a person with a disability.
In the United States, depending on the context, the term "welfare" can be used to refer to means-tested
cash benefits, especially the Aid to Families with Dependent Children
(AFDC) program and its successor, the Temporary Assistance for Needy Families
Block Grant, or it can be used to refer to all means-tested programs that help individuals or families meet basic needs, including, for example, health care through Medicaid
, Supplemental Security Income
(SSI) benefits and food and nutrition programs (SNAP)
. It can also include Social Insurance
programs such as Unemployment Insurance
, Social Security
, and Medicare
AFDC (originally called Aid to Dependent Children) was created during the Great Depression to alleviate the burden of poverty for families with children and allow widowed mothers to maintain their households. The New Deal employment program such as the Works Progress Administration
primarily served men. Prior to the New Deal, anti-poverty programs
were primarily operated by private charities or state or local governments; however, these programs were overwhelmed by the depth of need during the Depression.
The United States has no national program of cash assistance for non-disabled poor individuals who are not raising children.
Until early in the year of 1965, the news media was conveying only whites as living in poverty however that perception had changed to blacks.
Some of the influences in this shift could have been the civil rights movement
and urban riots from the mid 60s. Welfare had then shifted from being a White issue to a Black issue and during this time frame the war on poverty had already begun.
Subsequently, news media portrayed stereotypes of Blacks as lazy, undeserving and welfare queens
. These shifts in media don't necessarily establish the population living in poverty decreasing.
A chart showing the overall decline of average monthly welfare benefits (AFDC
) per recipient 1962–2006 (in 2006 dollars).
In 1996, the Personal Responsibility and Work Opportunity Reconciliation Act
changed the structure of Welfare payments and added new criteria to states that received Welfare funding. After reforms, which President Clinton said would "end Welfare as we know it",
amounts from the federal government were given out in a flat rate
per state based on population
Each state must meet certain criteria to ensure recipients are being encouraged to work themselves out of Welfare. The new program is called Temporary Assistance for Needy Families
It encourages states to require some sort of employment search in exchange for providing funds to individuals, and imposes a five-year lifetime limit on cash assistance.
In FY 2010, 31.8% of TANF families were white, 31.9% were African-American, and 30.0% were Hispanic.
According to the U.S. Census Bureau
data released September 13, 2011, the nation's poverty rate
rose to 15.1% (46.2 million) in 2010,
up from 14.3% (approximately 43.6 million) in 2009 and to its highest level since 1993. In 2008, 13.2% (39.8 million) Americans lived in relative poverty.
In a 2011 op-ed in Forbes
, Peter Ferrara stated that, "The best estimate of the cost of the 185 federal means tested Welfare programs for 2010 for the federal government alone is nearly $700 billion, up a third since 2008, according to the Heritage Foundation. Counting state spending, total Welfare spending for 2010 reached nearly $900 billion, up nearly one-fourth since 2008 (24.3%)." California
, with 12% of the U.S. population, has one-third of the nation's welfare recipients.
In FY 2011, federal spending on means-tested welfare, plus state contributions to federal programs, reached $927 billion per year. Roughly half went to families with children, most of which are headed by a single parent.
The United States has also typically relied on charitable giving through non-profit agencies and fundraising instead of direct monetary assistance from the government itself. According to Giving USA, Americans gave $358.38 billion to charity in 2014. This is rewarded by the United States government through tax incentives for individuals and companies that are not typically seen in other countries.
The welfare-to-work intervention programme is unlikely to have any impacts on the mental and physical health of lone parents and children. Even when the employment and income rates were higher in this group of people, the poverty rate was high which could lead to persistently high rates of depression whether they were in the programme or not.
Some opponents of welfare argue that it affects work incentives.
According to a 2012 review study, whether a welfare program generates public support depends on:
- whether the program is universal or targeted towards certain groups
- the size of the social program benefits (larger benefits incentivize greater mobilization to defend a social program)
- the visibility and traceability of the benefits (whether recipients know where the benefits come from)
- the proximity and concentration of the beneficiaries (this affects the ease by which beneficiaries can organize to protect a social program)
- the duration of the benefits (longer benefits incentivize greater mobilization to defend a social program)
- the manner in which a program is administered (e.g. is the program inclusive, does it follow principles?)
- ^ Except in the United States and Canada, where welfare refers only to direct financial assistance for poor or disabled people. In the U.S. it often refers to the Temporary Assistance for Needy Families program, while "Social Security" is a specific social insurance program.
Everyone, as a member of society, has the right to social security and is entitled to realization, through national effort and international co-operation and in accordance with the organization and resources of each State, of the economic, social and cultural rights
indispensable for his dignity
and the free development of his personality. [...]
Everyone has the right to a standard of living
adequate for the health and well-being of himself and of his family, including food, clothing, housing
and medical care and necessary social services, and the right to security in the event of unemployment, sickness, disability, widowhood, old age or other lack of livelihood in circumstances beyond his control.
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- Steven N. Durlauf et al., ed. (2008) The New Palgrave Dictionary of Economics, 2nd Edition:
- Nadasen, Premilla, Jennifer Mittelstadt, and Marisa Chappell, Welfare in the United States: A History with Documents, 1935–1996. (New York: Routledge, 2009). 241 pp. ISBN 978-0-415-98979-4
- Samuel Lézé, "Welfare", in : Andrew Scull, J. (ed.), Cultural Sociology of Mental Illness, Sage, 2014, pp. 958–60
- Alfred de Grazia, with Ted Gurr: American Welfare, New York University Press, New York (1962)
Review by Barrett Lyons in Social Work Vol. 7 Issue 2, p. 112
- Alfred de Grazia, ed. Grass roots private welfare: winning essays of the 1956 national competition of the Foundation for voluntary Welfare, New York University Press, New York 1957.
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