Well, we have similar problems in Western Europe. I think the problem with our welfare state in Britain is the issue of perpetuating an underclass who are totally dependent of welfare for everything. Some of it's fine, of course: free school (a right to all), healthcare (to all), emergency services (to all)... but free housing, income support, child benefit without question? Hmmm.
Perhaps it's time to stop paying people to have babies - this is a huge under-discussed problem here, exascerbated by the PC brigade. It's a can of worms - we're creating a group of people at the bottom of the social ladder with no social mobility and they're made up largely of ethnic minorities (which leads to resentment among the indigenous population as well) and a minority of white British with similarly low prospects. My thoughts on going forward?
1. Heavier taxes for those with more money than they can spend to pay for services everyone can use and fund state pensions.
2. No child benefit after the second child - there are enough people here anyway, so why pay people, particularly those who are less likely to "pay back" into the system, to have children?
3. All possible municipal housing (council, projects) to be tranferred into shared ownership schemes whereby a fraction of the rent becomes the occupants' personal estate. This will help transform estates and break-up the two-tier system of council housing vs private ownership in the UK.
4. All prisons to be totally self-sufficient and more, so that they actually serve communities freely, rather than act as a burden to taxpayers.
5. All unemployment benefits/income support to be paid for after real work - look around you. You can see the jobs that need doing that never get done. Why pay people to sit on their behinds all day when they can be out working for their benefits?
6. No more asylum seekers, refugees, or foreign workers to be allowed to jump the queue up the housing list over others awating housing. This is an issue that the BNP have capitalised on - and you can see why.