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Welfare Reform on the Web (May 2000): Welfare State - UK

THE CHANGING WELFARE STATE: SOCIAL SECURITY SPENDING

Department of Social Security

Hayes, 2000-03-22

Analysis of welfare spending shows that, in spite of Britain's ageing population, the welfare state will remain affordable in the next half century, providing the economy remains stable. Document forecasts that the welfare budget, standing at £100 bn, will grow at about 2.5% per year, matching the present growth rate of the economy, plus 1% real growth, totalling around £1 bn a year extra in real terms. The system will only remain affordable if further steps to tackle worklessness are taken. Only tight controls on spending will allow government to tackle its priority areas of child and pensioner poverty.

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