Last March, the number of individuals receiving seikatsu hogo (financial assistance from the government) exceeded 2.1 million people, the first time the record had been surpassed since 1951. Payouts this year are likely to exceed ¥3.7 trillion.
Based on the 2007 figures, Japan's ratio of public benefit levels relative to median income, 49 percent, was 8 points above the Organisation for Economic Co-operation and Development (OECD) average of 41 percent, making its payments proportionally higher than in Britain, Sweden and Germany.
The soaring number of welfare recipients — particularly in the category of working-age individuals who are not sick, handicapped or otherwise disabled — has raised concerns that outlays will further impact negatively on the nation's fiscal health. The system has also come under increasing criticism for ineffectiveness in screening out unqualified recipients who some are alleging have been exploiting loopholes.