CHAPTER 3

Government, DWP and Welfare System

  • The Parliament is made up of elected Members of Parliament (MPs) that work on behalf of the public to challenge and check the work of Government and to shape effective laws and to debate the issues of the day. The party with the most MPs, forms the Government and it is the Government that proposes how the country should be run and what services are provided and who is responsible for those services.

    The two main political parties in the UK are the Labour Party and the Conservative Party, although there are also many other parties of different sizes.

    As of 2026, the Labour Party is currently in government.

  • The Department for Work and Pensions (DWP) is responsible for welfare, pensions and child maintenance policy. As the UK’s biggest public service department it administers the State Pension and a range of working age, disability and ill health benefits to around 20 million claimants and customers.

  • The UK developed its welfare system in 1948. It acts as a safety net to support people through temporary periods of difficulty (for example, unemployment or health issues).

    The welfare system is split into five categories:

    1. Cash benefits (e.g. Universal Credit, housing benefit)

    2. Health care (e.g. the NHS)

    3. Education (e.g. schools and local colleges)

    4. Housing (e.g. social housing)

    5. Personal social services (e.g. providing care for those in need)

  • The welfare system is paid for by public taxes. Everybody who has a job in the UK and earns over a certain amount of money is required to pay tax to the government. More information about tax, including the exact amount you are required to pay, is shown later in the handbook.

Additional resources

Glossary

benefits
money to support people with living costs while they do not have a job

government
the group of elected people who make laws

MP
a Member of Parliament, or lawmaker

political party
a group of people who try to get voted into government

public service
a service that is available to all members of the community

tax
money you pay to the government

temporary
something that is not permanent

Universal Credit
a type of cash benefit paid directly into your bank account

welfare system
everything the government provides to make sure that people have an acceptable quality of life

Find out more