Advantages of Private Sector

Question 1

1:

Answer 1

Private companies use welfare resources more efficiently:
As the companies need to make a profit they have less bureaucracy and waste than state welfare
Emphasis placed on efficiency as too much administration reduces profits
Freidman: Based on profits which gives better service to the public
Takes pressure off the state sector, reduces tax burden and waiting lists

Question 2

1 A03:

Answer 2

May suffer from a lack of control and regulation: May not be subject to the same levels of inspection and scrutiny as state welfare services, for example, they may be able to employ unqualified staff. May lack proper regulation of its services not subject to the same controls and inspections as state run services. Workers in private care homes may provide poor quality care if they lack training and skills and fail to provide the high level of care that would come from a more regulated state service. For example, in 2012 Winterbourne View private hospital was closed down for employing unqualified staff and failing to provide appropriate care to adults with special needs. May lack accountability as private companies are accountable to shareholders and not Parliament and may not need to follow government guidelines on care.

Question 3

2:

Answer 3

Treats recipients as customers:
More emphasis on quality of care as they need to attract demand for their services
Profit motive contrasts with state welfare, doesn’t need to worry about long waiting list
Gives people a greater choice of care
Giddens: State welfare should be combined with the private sector and voluntary sector to cope with rising demand

Question 4

2 A03:

Answer 4

Pursuit of profits may lead to cuts in the quality of service: If they can save money on costs it will lead to greater profits, but may lead to poor service. For example, the company Capita is responsible for supporting GP practices in London, but its cost saving measures in 2016 resulted in shortages of vital supplies and doctors having to cancel appointments. Only available to those with money and this causes a two tier system of welfare with the poor relying on state or voluntary. Private welfare services will also end if the business closes down. This could have severe consequences for those using private care, such as in the case of the closure of Southern Care Homes, when many elderly people had to be moved from their residential care at short notice.