The benefits system
The Department of Social Security (DSS) is a government agency responsible
for managing social welfare programs, such as pensions, disability benefits,
unemployment support, and other financial assistance for eligible individuals.
Different countries have their own versions of this department, sometimes
under different names. For example:
In the United States, social security is managed by the Social Security
Administration (SSA).
In the United Kingdom, the former Department of Social Security
(DSS) was replaced by the Department for Work and Pensions
(DWP).
In Australia, social security benefits are handled by Services Australia
(formerly Centrelink).
Direct Government Assistance
The most straightforward way in which people are helped is by direct payments
of government money. Any adult who cannot find paid work, or any family
whose total income is not enough for its basic needs, is entitled to financial
help. This help comes in various ways and is usually paid by the Department of
Social Security. (aka Department for Work & Pensions in the UK these days)
How will people be helped by the government?
Who will receive the money?
Paid by who?
(Passage 1)
Unemployment Benefit
Anyone below the retirement age of sixty-five who has previously worked for a
certain minimum period of time can receive unemployment benefit (known
colloquially as ‘the dole’). This is organized by the Department of
Employment.
The dole: the money that the government gives to people who are unemployed
based on cambridge dictionary (Passage 2)
The conditions to receive unemployment benefit?
Organized by who?
What’s the dole?
Old-Age Pension
All retired people are entitled (get/receive) to the standard old-age pension,
provided that they have paid their national insurance contributions for most of
their working lives. After a certain age, even people who are still earning can
receive their pension (though at a slightly reduced rate). Pensions account for
the greatest proportion of the money which the government spends on benefits.
(Passage 3)
Who will receive the old-age pension and what does it require?
Is there any other party who also receive old-age pension?
In what aspect, does government spend on benefits the most?
Additional Retirement Savings
The government pension, however, is not very high. Many people therefore
make arrangements during their working lives to have some additional form of
income after they retire. They may, for instance, contribute to a pension fund
(also called a ‘superannuation scheme’). These are usually organized by
employers and both employer and employee make regular contributions to
them. A life insurance policy can also be used as a form of saving. A lump sum
is paid out by the insurance company at around the age of retirement.
Government pension is quite low
Why do many people make arrangements during their working lives?
How many kinds of retirement savings are there?
(Passage 4)
Income Support for Those Not Eligible for Pension or Unemployment
Benefits
Some people are entitled to neither pension nor unemployment benefit (because
they have not previously worked for long enough or because they have been
unemployed for a long time). These people can apply for income support
(previously called supplementary benefit) and if they have no significant
savings, they will receive it. Income support is also sometimes paid to those
with paid work but who need extra money, for instance because they have a
particularly large family or because their earnings are especially low.
Why are some people not entitled to pension or unemployment benefit?
What can they do if they have no signficant savings?
Who can also get income support?
(Passage 5)
Other Types of Government Benefits
A wide range of other benefits exist. For example, child benefit is a small
weekly payment for each child, usually paid direct to mothers. Other examples
are housing benefit (distributed by the local authority, to help with rent
payments), sickness benefit, maternity benefit and death grants (to cover
funeral expenses). (Passage 6)
What are the other types of government benefits?
Issues with the Social Security System
The system, of course, has its imperfections. On the one hand, there are people
who are entitled to various benefits but who do not receive them. They may not
understand the complicated system and not know what they are entitled to, or
they may be too proud to apply. Unlike pensions and unemployment benefit,
claiming income support involves subjecting oneself to a ‘means test’. This is
an official investigation into a person’s financial circumstances which some
people feel is too much of an invasion of their privacy. (Passage 7)
What are the issues with the social security system?
How to claim income support?
How does the system work?
How It Works:
If your income & savings are below a certain level → ✅ You qualify
for aid.
If your income & savings are too high → ❌ You may not qualify.
System exploitation
On the other hand, there are people who have realized that they can have a
higher income (through claiming the dole and other benefits) when not working
than they can when they are employed. (have to pay back all the money when
caught or eventually imprisoned) (Passage 7)
What’s the system exploitation?
The Future of Social Security
The whole social security system is coming under increasing pressure because
of the rising numbers of both unemployed people and pensioners. It is believed
that if everybody actually claimed the benefits to which they are entitled, the
system would reach breaking point. It has long been a principle of the system
that most benefits are available to everybody who qualifies for them. You don’t
have to be poor in order to receive your pension or your dole money or your
child benefit. It is argued by some people that this blanket distribution of
benefits should be modified and that only those people who really need them
should get them. However, this brings up the possibility of constant means tests
for millions of households, which is a very unpopular idea (and would in itself
be very expensive to administer). (Passage 8)
The future of social security?
Why does the system will break?
Who should get the benefits?
Is there any idea for this problem?
