Social welfare was characterised mainly by growth trends in 2016: the share of pensioners and disabled persons continues to increase, the use of social protection measures is expanding and the expenditure on pensions, allowances and benefits is increasing.
In a certain sense, social protection can be considered as an umbrella for those members of society who need help. Here, we can distinguish between the providers and recipients of help. The providers of help include, for example, state, local government and private institutions. In most cases, social protection can be classified as social insurance or social care. Social protection includes benefits in the case of death, loss of a provider, incapacity for work, birth of a child, but also subsistence and unemployment benefits, and benefits for disabled people. Therefore, the main objective of social protection is to ensure sufficient income for persons in need of help. Whether the measures of social protection are able to do so is an entirely different matter. For many people, these measures may not be enough, but they still help to reduce poverty risk. The burden on the social protection system depends mostly on the number of benefit recipients, which, in turn, is mainly related to developments in the economy and the labour market. In recent years, the economic situation and mainly the situation in the labour market have improved.
Social protection refers to public measures for ensuring people’s welfare in case of social problems or risks. It encompasses all interventions from public or private bodies intended to help households or individuals cope in case of the full or partial loss of income. There are several possibilities to arrange social protection, with social insurance and social care being the most common. The first means a state warranty guaranteeing income in case of certain social risks (e.g. death, loss of a provider, incapacity for work, birth of a child). This type of social protection includes various benefits financed from social contributions (health, unemployment and pension insurance) and compensating benefits financed from the state budget (subsistence and unemployment benefits, benefits for disabled people etc.). The purpose of social care is to increase social inclusion and to prevent and mitigate poverty and exclusion by offering social benefits and facilities.
The history of social welfare in Estonia dates back to the 13–14th century when the first shelters for ill and disabled persons were established. In the 18th century, social welfare councils were established for this purpose; a century later, the responsibility for social welfare started to shift from parishes to local authorities (Rahvusarhiiv 2014). The first Social Welfare Act in Estonia, adopted in 1925, regulated the development of social welfare establishments. Local authorities were responsible for the provision and financing of various services while the central government provided special welfare services (Raudla 2002). Institutionalised welfare was predominant during the Soviet era, meaning that persons with disabilities were often confined in institutions. After the restoration of independence, the main responsibility for social welfare shifted from the state back to local governments. Consequently, the current policy on disabled persons is a result of the developments in the last few centuries.
Social protection refers to public measures for ensuring people’s welfare in case of social problems or risks. It encompasses all interventions from public or private bodies intended to help households or individuals cope in case of the full or partial loss of income. There are several possibilities to arrange social protection, with social insurance and social care being the most common. The first means a state warranty guaranteeing income in case of certain social risks (e.g. death, loss of a provider, incapacity for work, birth of a child). This type of social protection includes various benefits financed from social contributions (health, unemployment and pension insurance) and compensating benefits financed from the state budget (subsistence and unemployment benefits, benefits for disabled people etc.). The purpose of social care is to increase social inclusion and to prevent and mitigate poverty and exclusion by offering social benefits and facilities.
