What Are Some Negative Effects of Social Welfare?

Some of the negative effects of social welfare include dependency and fraud, which can lead to additional negative effects. Studies have revealed that prolonged dependency on social welfare can negatively affect a child's IQ and can reduce the amount of the child's future earnings. Fraud uses up allocated funds that are necessary to help needy families and children.

Dependency on social welfare occurs when recipients grow to depend on the assistance they are receiving, instead of correcting the problem that causes the need for assistance. Social welfare is intended to assist low-income Americans; however, dependency can impede a child's ability to become independent and become a productive member of mainstream society.

States often have variations of the exact definition of social welfare fraud. In Idaho, reporting false information on an application or during the recertification process constitutes fraud. In addition, failing to report any change that may decrease benefits is fraud. Finally, giving away, selling or hiding assets in order to receive benefits is also consider fraud.

Most states provide a way for people to report suspected social welfare fraud. In Idaho, people report welfare fraud by using the online Welfare Fraud Complaint Form on the official website and by printing that form out and mailing it to the provided address. Social Welfare Fraud is also reported in Idaho by faxing the form to the provided fax number and by emailing the complaint form to the provided email address.