Spending on benefits and pensions is often exaggerated by politicians by only referring to the gross cost, before people pay taxes. However about 90% of the money paid out in benefits comes straight back in the form of taxes. The real cost of benefits is the amount paid out after taxes. This is a much smaller figure, £27.8 billion or about 1.4% GDP.
The publisher is the Centre for Welfare Reform.
Graphic on Real Cost of Benefits © Simon Duffy 2017.
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Simon Duffy and John Dalrymple make the case for Basic Income Security - a system to integrate and reform the current tax and benefit systems.
Simon Duffy looks at how the tax benefit system really works and wonders who are the real beneficiaries of this system?
Kofi Sampaney, Marvin Blair, Alexander James, Tyrone Paul and Mark Williams made this short documentary to describe the negative impact of welfare reform in the UK.