HAVERING’S £583 MILLION WELFARE BILL: One in four households on Universal Credit.


Havering Conservative Matej Travnicek-Chairman of Dagenham and Rainham today writes in the Havering Daily:

More than half a billion pounds spent on welfare in Havering

New research by the TaxPayers’ Alliance revealed that the total welfare bill for Havering alone reached £583,223,758 in the last financial year ranking the borough 80 out of 318 local authorities by total spend. This represents £2,111 per resident and constitutes an increase of 24.3 per cent over the last two years. Meanwhile, the median wage in Havering rose by only one per cent over the same period, reaching £41,054. The welfare bill has therefore risen at more than twenty-four times the rate of wages over that period.

Universal Credit accounts for the largest share of this welfare bill, with £366,367,837 spent and 26,270 households claiming it, equivalent to one in four households in Havering. The second-largest item is Personal Independence Payment (PIP), with £103,608,845 spent on 14,172 claimants. Spending on PIP has increased by 24.1 per cent over the last two years.

These historic levels of welfare spending come as public finances face massive pressures, with national debt at 94 per cent of GDP and approaching the £3 trillion threshold. Interest payments on the national debt alone cost £109 billion in the last financial year and are expected to rise further, putting additional pressure on the public purse.

Conservatives pledge to tackle unsustainable welfare budget

At their annual party conference, Conservatives introduced out a package of measures and updated their Plan for Savings that is now set to save £71 billion a year. In line with their Golden Economic Rule, half of these savings have been allocated to deficit reduction. 

The measures include replacing benefits right after school with Get to Work Allowance which will help young people to get a job, restrict social housing to British nationals, and reassessing PIP for those on mild conditions such as anxiety. 

“The money spent on welfare, and especially on servicing our debt, is the very same money that could otherwise have been spent on vital public services such as fixing potholes, making our streets safer or bolstering the defence of the realm. We should support the poorest in society, but we can’t afford to foster a handout culture and have a quarter of households on Universal Credit. This is simply unsustainable unless we discover some magic money tree,” commented Matej Travnicek, chairman of Dagenham and Rainham Conservatives.


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