Bummer is the only poster so far in this thread who seems to have the slightest clue as to why a welfare system exists in the first place.
Owen, you seem like a good guy with a great heart, but I just can't stand half of your opinions because you are so ignorant. I don't mean ignorant just as an insult, I mean you don't know. Like someone criticizing monetary policy who hasn't studied the economics of central banking in depth. It's just beyond you. Please don't feel to offended, as I will say I agree with you on the benefits being too extensive. I just take issue with you saying such harsh stuff without seeming to know where the idea of modern welfare systems came from.
Although some people are in favor of a welfare system because they think it's "fair", the real reason it exists has nothing to do with that. It's a rational economical choice which is quite complex. The money given to people on the dole is pretty much immediately flushed back to the economy, stimulating it in different ways and through the market, something the government would be terrible at doing itself.
The fact that many people, as you view, "abuse" the system is irrelevant. On a macro scale in the long run it's better to be supporting this people - some of them will eventually climb out of their situation. This is economically better for the country. The gains in productivity and human capital that are had when kids are able to go to school instead of having to work, help around the house or take care of their siblings are enormous. The financial benefit is hundreds of times that of the one you would have by "saving" this money and losing the people.
Also people that are between jobs for too long because they can't find a new one would have a much harder time without any support. For some it would just not be possible. There are accidents, devastating life events... too many sides to this and if you do want to learn it's easy to take a course in developmental economics or buy a book. The greater wealth a country can have is that of the human capital of its people, this is what determines wealth in a steady state, and its this capital that the system tries to improve. It gets distorted by politicians and their interests, and that's one of the main problems and reasons why it doesn't work that well in practice.
As it is, you are very short sighted and seem to not be willing to use any intelligence you have in analyzing the issue. When you say this:
I find it infuriating that we susidise those who have commited crimes against society the money to have their own place to live whilst many who are law abiding are forced in to living in shared accomodation. Makes no sense to me.
As a whole I think we do enough in the way of social care but the way in which it is distributed is all wrong.
Do you really believe the people in government housing are in such a great position, a better one than those who aren't on support, have their own jobs and their whole lives ahead of them? You certainly understand that this housing isn't in a great neighborhood, comes with bad neighbors and a lot of stigma. They are regularly monitored, have to answer to a lot of stuff and obligations that come with it. By using this broad generalizations you try to make it sound very wrong, but its general nature hides the truth.
It's not an ideal position for anyone. The rationale behind it is that by giving people a stepping stone, some will eventually improve their situation and become contributing members of society. Certainly some will abuse it and keep living on the dole all their lives if they can, but the point is that in the end it's financially better to offer support than not to.
It is certainly much more complicated to understand than I could resume in this post. I understand where your indignation comes from, but to talk about this you need to analyze it from a macroeconomic scale and understanding the logic behind it in the first place. You can be a crybaby and whine about fairness all you want, but it's not the point and it's a very short sighted view. You could get a better understanding of it looking at studies in different countries, specially less developed ones where the gaps in society are greater. The UK and Ireland are harder cases to grasp because of their relatively high standard of living.
I do myself think that the system in the UK is too generous, and it is has failed time and time again to deal with structural noise, mainly the fact that there is a group of people who are currently set to abuse the system indefinitely, have no intent of ever leaving it and even glamorize it. That's just a fault of the system, you are still better of with it than without it. Perhaps one of the ways out of it is having a way of identifying the individuals in this subcultures who have created their cultural identity out of being on the dole permanently, and increase regulation, driving them out. Maybe another way is to reduce the benefits slightly, maybe say by 50 quid from someone who gets 600, so they would on one hand still have enough to go by, but would feel they are in a disadvantageous position relative to what they were before and have incentives to get a job.
The way it is now it's so easy to fool the system. I remember them walking in my shop asking for a signature to prove they had tried to get a job. But they had never been there before and hadn't even brought a CV for me to look at. In fact they wouldn't even say what it was for, just ask for a quick signature like they were doing delivery and hope I didn't notice. But how would you not notice, when it's written in their faces and in their clothes that they plan to be on the dole their whole lives if they can?