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Flashcards in Government Spending & Welfare State Deck (17):

Name 2 Government Spending

1) Public Goods
2) Merit goods


What is "public goods" ?

Those which cannot be provided by the private sector because they would not be profitable
Example: Defence, law and order, street lighting


What is "Merit goods" ?

Activities which have been taken over by the state because they are services which our society has decided that everyone is entitled
Example: Health and education (NHS, State School, Hospitals-Bupa)


Problems with "Merit goods"

If left to the market mechanism welfare state in the UK would not be provided in the right quantities or the right price so many people would not be able to afford these services


Define " The welfare state"

Cover all the services and goods provided by the state, usually those which cannot, or world not be provided by the private sector


Name 4 Welfare in the UK

1) National Health Service
2) Education system
3) Housing Programme
4) Social security system


What does NHS offers?

The right to free medicine


What does "Education system" in welfare state aimed for?

It aimed to give every child a right to the very best education


What does "housing programme" in welfare state offers?

The right to a decent house or flat
To eliminate the slums


What does "Social security" system do?

1) Assist people who are living in poverty
2) Ensure people are not below the poverty line and out of absolute poverty
**Currently, more people live under poverty line, during Christmas there were great demand from Food Bank


Define "Benefit" and give examples

Payments made by the government from taxation to those who meet the criteria established for each benefit.
Funeral Payments
Cold Weather Payment
Maternity Allowance


What is "Universal benefits"?

State benefits to which all are entitled regardless of their level of income
Example: State pension, winter fuel payments


What is "Means-tested benefit"?

Payments made by the government only to people whose incomes are below a certain level
Example: Maternity pay


What is "Local benefits"?

Benefits that the local authority are responsible for
Example: Rutland


Housing benefit and Council tax benefit

For people on a low income who pay rent and council tax regardless of whether or no they are employed


Local education authority

Provide free school and college places
• Provide means tested help with children's clothing and grants for those in school beyond 16.
• Free school meals are provided on a means-tested basis


Local social services

Provide residential services and personal social services such as home helps, with the help of social workers