UK in danger of becoming a 'welfare state with a bankrupt country attached' - London Business News | Londonlovesbusiness.com
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UK in danger of becoming a 'welfare state with a bankrupt country attached' - London Business News | Londonlovesbusiness.com
"My reforms changed the welfare system to make work pay and brought workless households to an all-time low. But because of the post-Covid collapse in vetting and rise of health-related welfare claims, millions of workers could take home more from welfare than wages after tax. This is an outrageous state of affairs. The system must stop writing off thousands every day and incentives to work need to be restored to end this ruinous waste of human potential."
"According to the Centre for Social Justice (CSJ), over six million people who are in work would be better off on benefits under this current government. The UK has seen a surge in people claiming benefits since Labour came to power as many companies have frozen hiring due to extra tax hikes Rachel Reeves imposed during the last two Autumn Budgets."
Over six million people in work would be better off on benefits under the current government, per the Centre for Social Justice (CSJ). One in four full-time workers would be financially advantaged by swapping wages for benefits. Benefit claims have surged since Labour took power as many companies froze hiring following tax increases introduced by Rachel Reeves in the last two Autumn Budgets. The CSJ expects around 1,000 daily disability claims driven by rising depression and anxiety. Sir Iain Duncan Smith warned that post‑Covid vetting failures and rising health-related claims could leave millions receiving more from welfare than wages, risking a welfare state and fiscal strain. Reform UK called for tax cuts and welfare reform to restore work incentives.
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