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Fascinating analysis of official data by Policy Exchange reveals that one-third of benefits (£53bn in total) are paid to people who are wealthier than average. £5bn of child benefit, for example, goes to households with above average incomes. The table below summarises which benefits are enjoyed most by wealthy Britons and how much it costs the taxpayer;

Screen shot 2010-06-16 at 18.48.40 Neil O'Brien, Director of PX, commented:

“Our benefits system is totally out of control. We’re wasting billions of pounds on a merry-go-round that taxes people, churns the money through huge bureaucracy, and then gives them their own cash back in the form of benefits. Under Gordon Brown people were encouraged to become more and more dependent on the state. We need now a welfare system that allows people to be self-reliant. The last government ran up debts equivalent to £100,000 per family. Now we urgently need to get our public spending under control – and cutting back wasteful welfare spending is an obvious place to start.”

More here.

19 comments for: One-third of all welfare payments go to families with above average incomes

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