Jun 13, 2024, 5:00 AM
Jun 12, 2024, 11:01 PM

Analysis predicts Britain's welfare bill to increase by £60 billion over the next four years

Highlights
  • Resolution Foundation analysis indicates a significant rise in Britain's welfare bill over the next four years.
  • Pension spending and demographic factors lead to a projected increase of £60 billion by 2029.
  • Working-age families face financial challenges while pensioners benefit from the welfare system.
Story

The welfare system in the UK has undergone radical changes over the past decade, with pensioners and people on disability benefits emerging as the winners, while working-age families are losing out financially. The Resolution Foundation's report highlights how the Conservatives' overhaul of social security has shifted spending towards supporting elderly individuals, leading to an increase in the welfare state's size. Pensioners have gained an average of £900 per year, while working-age families have lost around £1,500 annually. The report also points out that core levels of benefits are deemed inadequate, with concerns raised about the impact of policies like the two-child limit on families. The future government will face challenges as welfare spending is projected to rise significantly, driven by factors such as the pensions Triple Lock and a growing number of individuals claiming disability benefits. Despite promises to address these issues, cuts may be difficult to implement due to the rising demand for assistance. Overall, the report underscores the complex financial landscape and the need for ongoing attention to ensure the welfare system adequately supports those in need.

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