The welfare system in Denmark is known as the Nordic Model. This means the state takes primary responsibility of its citizens.

It sees a broad-reaching welfare system that provides free health care system, pension schemes, supports maternity and paternity leave, provides benefits for the un-employed and support for the disabled just to name a few.

All of this is funded by high taxes (compared to the rest of the world) and a VAT of 25%. These taxes are then distributed by the state to those most in need.