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MAPPED: The UK areas paid more in benefits than they pay in tax as welfare bill soars
New research by the Adam Smith Institute finds that welfare spending exceeds the income tax and National Insurance collected in three-quarters of English constituencies, and across Wales as a whole. The figures highlight regional differences in how welfare is funded and come as the UK benefits bill is forecast to grow, prompting questions about the system’s long-term sustainability.
The tracker estimates £1.25 of welfare spending for every £1 of income tax and National Insurance in England, and £1.88 in Wales. Birmingham records £2.54 per £1, compared with £2.05 in Liverpool, £1.52 in Manchester and 78p in London; only London and the South East are described as net contributors. Pensions account for 47% of the bill, while the total is projected to rise from £353 billion to £431 billion by 2031-32; Andy Burnham has called for major changes to support young people not in work, education or training.
In short
- Welfare spending exceeds income tax and National Insurance in most English constituencies.
- Wales spends £1.88 in welfare for each £1 raised through those taxes.
- The UK benefits bill is projected to reach £431 billion by 2031-32.