Britain recently announced a major overhaul of its welfare system, the biggest overhaul since World War II. Its once generous system now pledges harsh penalties for those who refuse jobs, and the unemployed must now do community service work to receive their benefit checks. This move, as part of the government spending cuts, will reduce and consolidate assistance programs and also weed out the cheaters. It will also bring unemployment and welfare benefits closer in line to that of the United States.
Because the welfare system was so generous, some recipients were refusing to take modest jobs as they would rather be receiving their welfare checks, something unheard of in other major economies. Now, anyone who turns down more than three job offers will lose their benefits for up to three years. Ironically, the system will be administered through the Internet to cut down on costs, but many claimants don’t have access to the Internet at home.
Some welfare recipients actually earn more than those who work. Under the new system, many of the five million or so who claim welfare benefits will now need to do four weeks of unpaid community service work, which could include manual labor, to remain eligible for their £65 (approximately USD$105) weekly checks. The government expects the overhaul to save an estimated $2.4 billion a year.
Let’s hear your thoughts. Do you agree with these stricter rules to become eligible for welfare?