This essay aims to prove that
Ethical issues is a useful tool for understanding the current impacts such as
state welfare allocation affecting the different economic aspects in our
society. This is subtly indicated by the way in which UK’s economy has been
struggling since the Brexit vote which has resulted in sluggish growth rate which
indirectly declines its standing as the leader against other powerful European
countries. A decision which has proved extremely controversial with its
citizens due to European Union sidelining Britain with trade deals and free
trading policy only accessible to EU members. Undeniably these play a major
role in the economy due to exports becoming extremely expensive due to the
currency dwindling and influencing major households to change their preference
in buying power affecting lower consumer confidence and higher inflation prices
which puts immense pressure on the government to increase taxes and inject more
money in to various public services welfare funds which need to be allocated
with people in crisis. UK provides many different types of welfare allowances
to its citizens therefore by helping them with improved lifestyle such as
Health care and Housing being the key ones and many more which are extremely critical
in maintaining physiological human needs.


Budget every year is set by the chancellor of exchequer to the house of Commons
outlining the state of the economy and the government’s proposals for changes
in taxation”. However, it is important to remember that welfare would be
allocated depending upon the funding requests submitted by the public sector
departments and the government taking the final decision after reviewing on the
vital needs required by each one of them.


Health Service was an integral part of the UK’s economy in the year 1948”
especially when all the doctors were brought under one umbrella by the
government to treat anybody in need of medical treatment free of cost. It has
been shown that although this has been a very positive initiative by the
government we could argue that UK’s economic growth is very critical for the
survival of the institution with health care costs rising year on year with
figures estimated to the tune of “3£124.7
billion for the year 2017/18” meaning there would be many challenges to be
faced in the near future if it’s not dealt with on an emergency basis which
would make the government either cut down on their NHS budget or increase the
tax rates even higher.









According to some expert’s “4Tens
of thousands of people are going through unnecessary operations which is costing
the NHS a fortune as stated by professor Andy Carr that there is no significant
benefit beyond placebo for many surgeries that have been taking place for a
very long period of time”. As this quotation points out that human beings
behave in a situational ethical manner meaning circumstances make them behave
in a certain condition rather than static manner. One should also consider that
ethically this is not justified towards other individuals who genuinely require
medical assistance but therefore have to wait weeks or months in order to be
treated which puts the doctor’s role under scrutiny as it’s their job to keep the
patient well informed about the next steps in to their case and be extra
vigilant if there are unnecessary operations authorized which are incurring additional


Turning now to the question
of council housing by and large “5The
reason why council housing was established because private sector was unable to
provide  affordable housing for low
income households”. Housing welfare benefits require humongous amount of tax payer’s
money to up keep as government is determined to use up their resources to
provide shelter. Housing boom in the previous decade have played a very pivotal
role as the number of properties rented have risen significantly as well the


The key drivers of this housing
bill expected to rise even further is due to government’s incapability to build
additional council housing and major subsidy cuts has made it impossible for
low income families to afford the sky high rents. “6On
the other hand we could argue that right to buy housing act introduced in 1980
by Thatcher government” has been extremely debatable due to the fact that state
owned assets which appreciated in value were given away at very discounted
prices to low income families to develop their lifestyle which in the longer
run we can see has resulted in housing crisis and very inflated house prices
resulting in vast shortages in the public sector.


is an ethical theory that judges whether or not something is right by what its
consequences are”. This claim supports the idea that many lower income families
who are heavily dependent upon the housing welfare has been granted council
housing in the posh areas of the country whereas the middle class cannot afford
housing at such some exclusive areas which sparks dispute whether lower income
families should be granted those privileges at tax payers expense but on the
contrary this can also cause a major social misbalance due to a huge divide of
area between the poor and rich. To illustrate this point David Ricardian’s
theory of rent aims to prove this point as the demand and population of the
country increases it’s not enough to meet the obligation of the growing demand.
As Ricardian proposes that its migrants will have to be settled on a different
land which in our case proposes that the increasing number of housing welfare individuals
could be allocated houses more efficiently accessible outside London as that
resolves the issue between the government’s affordability and protect the lower
income families from the ever rising London rents.

Generally speaking, full
employment is when everybody is employed with a reasonable paying job. “8As
for unemployed people claiming Job seekers allowance or universal credit, there
were 804,100 people claiming these benefits as of September 2017 and this
number has grown 3.3% in contrast to last year”. Research has shown that
although the number has risen claiming benefits the current unemployment in the
economy is one of the lowest in comparison to the past three decades. This
could be due to UK’s economy traditionally known as an ageing economy with a
lot of retirees being replaced by younger workforce to take over their jobs. Adam
smith believed value in use and value in exchange are essential element to full
employment due to UK’s employment hitting record highs but the regular growth
of pay has stagnated whilst the inflation has risen. The industries and the
economy are gaining the same value from the workforce but value in exchange
does not exist which makes the employees worse off making them demotivated to
work and this can overall put the figures up claiming for job seekers
allowances in the long run due to no incentive for the workers to be in full
time employment.


 Equal distribution of income and tax rates play
a major role on the welfare reserves of a nation. UK is one such country who
has high inequality in income. Inequality in income is raised by many factors
such as disability, unemployment, academically weak and so forth. This unequal
distribution of income can cause major inequality due to the unaffordability by
a section of people who cannot afford to buy goods and services which prompts
the government to mediate by providing them the basic necessities for their
survival.  “9Households
in the bottom 10% of the population have an average income of £9,644 whereas
the top 10% have net income almost nine times that £83,875” This evidence
suggests that inequality in income is wide spread which reflects in government
spending over 30% of their income generation on welfare. Progressive Tax rates
are of paramount importance for the government as they can collect higher
amount of income tax through high earners however one should also consider that
it will be extremely discouraging for individuals to work harder and create
more income. Adam Smith was a firm believer that inequality is not acceptable for
the further growth of economy infact he considered higher wages for the workers
and lower profits as even distribution was his goal. Moreover, wages should
increase if there is wealth creation as he saw employers gaining the power over
employees by influencing law makers to pass regulations in their favour as
wages were not simple as supply and demand.  


State Pension is the largest
paid welfare fund paid by the government as technology has upgraded and life expectancy
has gone up which means year on year the pension allocation fund will keep on
increasing but this is what the individuals have worked for throughout their
entire career. “10Steve
Webb the pensions minister said that people earn their state income throughout
their working lives by paying their national insurance contributions and feel stigmatized
by the idea that they are claiming benefits” We might conclude that state
pensions do take the lions share out of the welfare funds but they are
deserving of their efforts and contributions to the economy. While it is
generally agreed that pensions are long term savings plan the government on on
the other hand has decided upon scrapping the pensions limit. “11Chancellor
Phillip Hammond had proposed a cut to the annual pensions savings limit from
£10,000 to £4,000 a year for those who have already made use of their pension
freedoms”. This claim supports the idea that












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