Brief

UK welfare outlays dwarf transport and tech spending by £1.1 trillion

The CSJ’s “State of Dependency” report shows benefits cost £1.6 trillion since 2006/7, far outstripping infrastructure investment.

By Felo News Desk · Published Tue, 13 Oct 2026 04:04:49 GMT

Research released by the Centre for Social Justice (CSJ) on Tuesday says public spending on welfare has outstripped investment in transport, housing and technology by £1.1 trillion over the past 20 years.

What happened

The CSJ’s "State of Dependency" report compares spending from 2006/7 to 2024/25, finding the UK spent £1.6 trillion on working‑age benefits. That figure exceeds the total public outlay on transport, science and technology, housing, economic development and local amenities combined.

What the reports add

The report notes that in the post‑war period (1945‑1979) Britain allocated 4.5 % of GDP to infrastructure and 2.5 % to working‑age welfare. Today those ratios are reversed, with 5 % of GDP going to benefits and only 2.5 % to infrastructure, according to the CSJ.

What was said

Ben Gregg, head of welfare at the think tank, told Independent that "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". He added that "a Britain where everyone has a stake in prosperity is one where good jobs and thriving towns are within reach of every community".

How it came about

The findings arrive as Chancellor John Healey prepares the October 28 budget, facing pressure from opposition parties to curb benefit spending. The report also references comments from Labour leader Andy Burnham, who said the government could reduce the welfare bill by helping more people into work, while rejecting "crude cuts" to benefits.

Key facts

UK spent £1.6 trillion on working‑age benefits between 2006/7 and 2024/25 (independent.co.uk)
Welfare spending exceeds transport, housing and technology investment by £1.1 trillion over two decades (independent.co.uk)
Current GDP allocation is 5 % to benefits and 2.5 % to infrastructure, reversing the post‑war split (independent.co.uk)
Chancellor John Healey will present the budget on 28 October amid calls to curb benefit spending (independent.co.uk)
Ben Gregg of CSJ said governments have used welfare to "numb the pain" rather than create jobs (independent.co.uk)