Families relying fully on Department for Work and Pensions (DWP) benefits are projected to receive £18,000 more than some working families by 2026/27, following recent adjustments tied to inflation and the Labour Party’s Autumn Budget.
According to the Centre for Social Justice, a family with three children, where at least one parent claims Universal Credit along with housing and health benefits, could receive around £46,000 in total support by 2026/27. This contrasts sharply with a household where one adult is employed full-time and the other part-time, taking home approximately £28,000 after tax.
Sir Iain Duncan Smith, former Work and Pensions Secretary, criticized the situation, stating the welfare system is “consuming hard-working taxpayers’ money” and emphasized that increasing welfare spending by raising taxes on workers is “a bad choice.” He argued that funding benefits alone fails to address the deeper causes of poverty.
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Conservative leader Kemi Badenoch also weighed in, highlighting concerns about the expanding state and its impact on the economy. She noted that fewer people working to support a growing welfare population creates an unsustainable burden, likening it to a rider heavier than the horse pulling it. Badenoch pointed to productivity losses caused by regulatory barriers and legal challenges, which discourage investment and job creation. She called for policies focused on increasing employment, investment, and exports to rejuvenate the UK economy.
Badenoch concluded that revitalizing work and growth is the key to funding vital services like the NHS, defense, and support for the vulnerable. She also criticized Labour leader Keir Starmer, accusing him of advocating renewal in words while supporting stagnation in action.