The Dependency ratio, taxes and the state of the public finances

Source: DWP benefits statistics

 

The main reason public finances in the UK have deteriorated so badly is the surge in benefit claims and payments. It has led to big pressure on the accounts and to  too much borrowing. As the state borrows more to pay more benefits so the interest burden of the state debt rises, intensifying the problems with paying the bills. The DWP confuses the State Retirement Pension which is of course a Contributory benefit, with the other non contributory ones.

The government needs to take the surge in benefit numbers and claims more seriously. I am one of the first to say of course we should pay tax to ensure that the seriously disabled and ill can have a decent home and life . This should not be extended to granting sick notes for life to people with mild mental disorders, where helping them into work could help with their recovery. This government has allowed a big rise in the numbers granted benefits with no requirement to seek work. They need to require more to seek employment and to give them the incentives and conditions that encourage successful pursuit of a job. They also need better business and tax policies to promote more vacancies.

The government needs to toughen its controls over our borders more. Too many low pay and no pay people have been allowed in and moved onto in work and out of work benefits. Too many dependents have then also been allowed in to be with the illegal arrivals who get permission to stay. There are still far too many illegal arrivals who are now allowed by this government to claim asylum after they arrive illegally, despite arriving from safe countries. Recruiting more from overseas to do low paid jobs also depresses wages, leaving more people needing benefit top up. This becomes a poverty go round.   This too is increasing the dependency ratio.

The combination of inviting in, allowing in and home growing too many people on low and no incomes is leading to a soaring benefit bill. The more people there are on benefits, the more this government puts up taxes on those who are not. The higher taxes then pushes the richest and most successful out of the country, worsening the ratio between taxpayers and recipients of benefits, More than half the nation now receives net benefits, placing an ever greater strain on those who do make a financial contribution to the state.

2 Comments

  1. Ian Wragg
    June 12, 2026

    All going to plan then
    Population replacement at full speed, no money for defence bit unlimited funds to prop up the immigration scam.
    Net zero under the command of the idiot Marxist Milibrain destroying our energy security under the guise of increasing energy security.
    These problems alone if refunded would stabilise our finances.
    Liebour being the Welfare Party will never address things because it would upset what they consider their core vote. This of course isn’t the case as a large portion of immigrants are now voting for their own people.
    I see no healthy solution.

    Reply
  2. Pominoz
    June 12, 2026

    “The DWP confuses the State Retirement Pension, which is of course a Contributory benefit, with the other non- contributory ones.”

    It is obviously quite right, in the minds of the Government, to allow millions of never-to-work migrants into the country and give them vast sums of money without question, but considered quite wrong to pay a proper State Pension to those who fully contributed during their working lives, but are now living in Australia, New Zealand, Canada and certain other countries, thereby also removing from the Government the cost of continuing healthcare.

    It is time this anomaly was rectified, and the State Pensions unfrozen.

    Reply

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