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Real Cost of Benefits

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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