In the media

What lessons can the UK take from other countries on welfare?

Katie Crookbain Ali Rana

By Katie Crookbain, Ali Rana

Civil Service World

06 January 2025

For over a century, successive reforms have changed the face of UK welfare in response to shifting expectations. The introduction of the old age pension in 1908, for example, reflected the transition from viewing poverty as a quasi-criminal state to a position of hardship requiring aid.

Despite this change in mentality, UK welfare services have historically struggled to meet demand. In 2023, welfare accounted for almost £1.2tr of UK public spending, yet one in five people in the UK were defined as being in poverty. While COVID-19 undoubtedly contributed to people’s hardships, this trend of growing demand predates the pandemic. Staff shortages and fractured welfare services compounded the challenges.

Norway and the Netherlands are well-known for their joined-up, tech-enabled, citizen-centric welfare systems. Sharing experiences across countries can inform solutions to common challenges, fuelling more effective welfare services.

Recognise the digital opportunity

Digital services can ease workloads, streamline provision and speed up resolution. They can offer an always-on touchpoint for citizens, and gather data to inform service development.

In Norway, citizens can apply for all (approximately 30) of the Labour and Welfare Administration (NAV) benefit services online, and the child benefits and pensions are automatic – removing stress for the recipient. Hundreds of in-house agile product teams support NAV’s digital developments. NAV is also piloting AI to advise case handlers during complex cases and in job centres to identify capabilities that increase individuals’ employability. Meanwhile, in the Netherlands, AI is expected to aid error detection – an important low-hanging fruit.

The UK’s Department for Work and Pensions (DWP) is beginning to explore the appropriate use of AI to streamline decision-making. AI offers significant benefits, including reductions in time, cost, and stress and for success. To succeed, DWP must communicate the accuracy and security of AI-infused systems to build confidence. To do this, it can draw on compelling examples from the health sector to demonstrate the potential benefits. Two examples show the scope of what can be achieved. In Denmark, an AI algorithm optimises breast cancer detection, acting as a first assessor for low-risk patients (about 70% of those screened). A radiologist checks the assessment, saving resources and time while reducing false-positive diagnoses. In Sweden, AI-powered medical robots complete medicine rounds in nursing homes, supporting residents’ independence while freeing staff to assist with complex needs. The robots could save 200,000 working hours a year by 2026 – equivalent to 125 full-time employees.

Focus on equity

While tech and digitalisation offer many benefits, not everyone is a digital native or interacts with systems in the same way. A recent UK DWP report warns that increased digitalisation in welfare may create more inequality. To negate this, fast-to-digitalise countries are working to achieve greater equity; providing services in the formats and channels that citizens require. NAV, for example, develops new welfare features with user groups to ensure accessibility and has simplified the language in official letters. In the Netherlands, Uitvoeringsinstituut Werknemersverzekeringen (UWV), commissioned by the Ministry of Social Affairs and Employment, works with municipalities in corporate work centres to provide in-person support.

This article was first published in Civil Service World.

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