What the Welfare Budget Looks Like Minus Pensions

Counting pensions as an old age ‘benefit’ has provided lefties with data-based ammunition against small state conservatives who want to slash the welfare bill. Looking at the graph below, targeting proportionally tiny housing benefits or tax credits looks futile – superficially at least – when 42% of the ‘welfare’ budget is spent on pensions:

You can see why lefties love using this statistic – it grossly skews the welfare bill to make it look like we hardly spend anything on the things their opponents want to cut.

So what does the welfare budget look like if we take pensions out of the equation?

This truer reflection of the welfare budget sees the other slices of the pie double in size.

30% of the non-pensions budget is spent on family benefits, income support and tax credits, some £45 billion.

Housing makes up closer to 20%, £26 billion.

A much clearer illustration of what we spend on welfare than lefties and the ONS would have us believe…




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Quote of the Day

John Curtice on fiscal policy:

“Attitudes to taxation and spending are basically counter-cyclical. If a government comes in and tries to reduce spending and taxation, after a while people will get worried about the state of public services. If a government increases taxation and public spending, after a while they’ll get concerned about increasing taxation…. In as much as there are lots of ideologues out there who think the state should be this proportion of GDP, they’re all wrong. Because the public’s view is counter-cyclical to the recent experience. It’s basically impossible to satisfy the public.”

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