The benefits bill in the UK is increasing at a rate more than double that of workers' pay, with payments rising by 25.8% across much of the country in recent years. In contrast, earnings have only increased by 10.4% during the same period. An analysis by the TaxPayers' Alliance indicates that support payments for low-income individuals and those with disabilities, including Universal Credit, Personal Independence Payment (PIP), and Housing Benefit, have outpaced median pay in 502 of the 526 constituencies in England and Wales. Welfare spending has risen in all constituencies between November 2023 and November 2025, while wages have decreased in some areas.
The TaxPayers' Alliance, a pressure group, has called on the Labour Government to address the growing benefits bill, which currently exceeds £300 billion annually, including the State Pension, and is projected to surpass £400 billion by the end of the decade. Chief executive John O'Connell stated, 'The benefits bill is spiralling out of control, with taxpayers in some places seeing wages fall as welfare spending surges around them. Ministers need to stop pretending this is sustainable and get the benefits bill under control for the sake of working taxpayers.'
The group has created a tool for individuals to check the changes in their local areas. The research highlighted Birmingham Yardley, represented by former Labour Home Office minister Jess Phillips, as having the largest increase in welfare costs, which rose by 37.2% over two years, while median pay increased by only 2.5%. In Hornchurch and Upminster, wages fell by 13.9%, while benefits costs rose by 26.9%.
In 19 constituencies, the cost of benefits exceeded a tenth of average pay last year. For example, in Hackney North and Stoke Newington, represented by Labour's Diane Abbott, median pay was £37,530, while the cost of benefits was £4,621 per resident. The report also noted that in 51 constituencies, the cost of benefits equaled the income tax and National Insurance contributions of at least half the population. In Easington, County Durham, the benefits bill reached £340 million last year, while tax contributions from median wages totaled £5,144, indicating that 66,270 average earners were required to cover this cost.
The Reform party has pledged to save over £50 billion annually by 2030 if elected, including limiting benefits to British citizens. The Conservative Party has proposed saving £23 billion by preventing long-term unemployed individuals from using Universal Credit for purchasing cigarettes and alcohol. Meanwhile, Labour plans to release reviews on PIP and youth unemployment, facing internal criticism regarding proposals to stop under-25s from receiving the health element of Universal Credit in exchange for support to enter the workforce.