UK spent £1.1tn more on welfare than infrastructure over past 20 years, CSJ report says
The CSJ's State of Dependency report says welfare spending now exceeds infrastructure investment as a share of GDP.
By Felo News Desk · Published
Britain has spent £1.1 trillion more on welfare than on infrastructure in the past 20 years, according to a report by the Centre for Social Justice (CSJ) released on Tuesday.
What happened
The CSJ’s State of Dependency report finds that between 2006/7 and 2024/25 the UK spent £1.6 trillion on working‑age benefits, far outstripping public investment in transport, science and technology, economic development, housing and community amenities. The analysis also shows that between 1945 and 1979 the country allocated about 4.5 % of GDP to infrastructure and 2.5 % to working‑age welfare; those ratios have now reversed, with 5 % of GDP going to benefits and only 2.5 % to infrastructure.
What the reports add
Both dailymail.co.uk and standard.co.uk report the same spending figures and the same GDP‑share reversal. The Daily Mail notes the CSJ described welfare as an “anaesthetic that has kept areas of the country numbed during two decades of economic failure”, and adds that the lack of investment is especially acute in regions with high worklessness – the North, the Midlands and South Wales. The Evening Standard repeats that description and highlights the same regional disparity.
What was said
“For decades, governments have tried to compensate struggling regions for economic decline rather than reverse it, using welfare to numb the pain instead of providing a reason to hope.”
— Ben Gregg, head of welfare at the CSJ, quoted by both the Daily Mail and the Evening Standard.
“A Britain where everyone has a stake in prosperity is one where good jobs and thriving towns are within reach of every community. That is not achieved by writing a cheque and forgetting about people. It comes from investing in these places and removing the barriers that stop businesses doing the same.”
— Ben Gregg, adding further comment in both outlets.
“For too long, worklessness has been entrenched in too many communities, and people not given the opportunity to thrive. We are determined to get Britain working and boost growth in every postcode, including publishing the 10‑year infrastructure strategy, increasing public investment by £120 billion to unlock private capital, and delivering reforms to planning, major infrastructure and regulation.”
— Government spokesperson, as reported by the Evening Standard.
“The Government could get the welfare bill down by supporting more people into work, but we will not pursue ‘crude cuts’ to benefits – that should never be the Labour way.”
— Prime Minister Andy Burnham, speech at the Labour Party conference, cited by both outlets.
How it came about
The CSJ’s analysis builds on its long‑standing focus on the relationship between social policy and regional economic performance. The report arrives as Chancellor of the Exchequer John Healey faces pressure from opposition parties ahead of his Budget on 28 October, with the CSJ noting his role in trying to get the welfare bill under control.
Key facts
- The UK spent £1.6 trillion on working‑age benefits between 2006/7 and 2024/25. (dailymail.co.uk)
- Welfare spending exceeded infrastructure spending by £1.1 trillion over the past 20 years. (standard.co.uk)
- The share of GDP spent on working‑age benefits rose to 5 % while infrastructure investment fell to 2.5 %. (dailymail.co.uk)
- Ben Gregg, head of welfare at the CSJ, said governments have used welfare to “numb the pain” rather than create hope. (standard.co.uk)
- Prime Minister Andy Burnham said the government could lower the welfare bill by getting more people into work. (standard.co.uk)
Sources
- [1] dailymail.co.uk
- [2] standard.co.uk
