Spending on Welfare Benefits

The bulk of our welfare cost is on the state pension.

Politicians have repeatedly shied away from suggesting there should be cuts in that area of      spending, as it isn’t a vote winner with older people, who are usually more inclined to turn out at    elections.

Targeting something like housing benefit is easier politically, but housing benefit is not just paid to households where no one is working, it is paid to many pensioners and households who are earning but on low paid.

We spend four times as much on state pensions as we do on housing benefit, but if Osborne is determined to squeeze another £25bn out of Government spending while protecting pay-outs to pensioners, then it is housing benefit, jobseekers allowance and carers allowance that are likely to feel the brunt.

Here’s a breakdown of how the DWP spent their entire benefits budget in 2011-12.

Benefit	Cost in £bn                Percentage in 2011-12                 of Budget
State Pension	74.2                            46.32%
Housing Benefit	16.9                            10.55%
Disability Living Allowance	12.6                              7.87%
Pension Credit and Minimum Income Guarantee	8.1                                5.06%
Income Support	6.9                                4.31%
Rent Rebates	5.4                                3.37%
Attendance Allowance	5.3                                3.31%
Incapacity Benefit	4.9                                3.06%
Jobseekers Allowance	4.9                                3.06%
Council Tax Benefit	4.8                                3.00%
Employment and Support Allowance	3.6                                2.25%
Statutory Sick Pay and Statutory Maternity Pay	2.5                                1.56%
Other benefits	10.1                              6.30%