UK welfare spending exceeds income tax and National Insurance receipts, Digi Mart USA News (England and Wales): A new Welfare Sustainability Tracker from the Adam Smith Institute shows that across England and Wales, £61 billion more is spent each year on Department for Work and Pensions (DWP) benefits and welfare than is collected through income tax and National Insurance. The report puts that gap at £1,245 per adult.
According to the tracker, for every £1 paid in through these two taxes, £1.27 is spent on welfare. Of the 575 parliamentary constituencies analysed, 430 receive more in welfare than their residents pay in income tax and National Insurance, while the other 145 pay more through these taxes than they receive.
Viggo Terling, Chief of Staff at the Adam Smith Institute, said a welfare state spending more than it raises through these taxes increasingly relies on other taxes and borrowing. He said that with only London and the South East contributing more through these taxes than they receive in welfare spending, serious questions arise about the long-term sustainability of the system.
The source reports that Prime Minister Burnham has said he wants to reduce the number of young people outside work, training or education. Asked whether this could mean cutting some benefits, Mr Burnham told Times Radio he was prepared to take difficult decisions, stating that he could not accept a million or more young people in their 20s being on benefits.
Mr Burnham told the BBC he could not guarantee when the overall benefits bill would begin falling, adding that investment in support for young people would need to rise first. He said some funding may need to be reprioritised.
