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Number of households receiving benefits 'has doubled under Labour'

Published by Jon Land for 24dash.com in Bill Payments and also in Housing
Thursday 12th November 2009 - 11:01am

Number of households receiving benefits 'has doubled under Labour' Number of households receiving benefits 'has doubled under Labour'

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The number of households receiving benefits worth more than £15,000 a year has doubled since Labour came to power, figures showed today.

Welfare Reform Minister Jim Knight said 1.2 million households were given state handouts in excess of £15,000 a year in 2007-08, compared with 600,000 in 1997-98.

Households receiving more than £20,000 a year trebled in that time, from 100,000 in 1997-98 to 300,000 in 2007-08.

The figures do not include income from tax credits, Mr Knight told shadow work and pensions secretary Theresa May in a written Commons answer.

Data was taken from the nationally representative Family Resources Survey, which includes benefits administered by the Department for Work and Pensions, HM Revenue and Customs, Service Personnel and Veterans Agency and local authorities.

"The amount of benefits a family receives is entirely dependent on its individual circumstances," Mr Knight added.

Later figures showed spending on council tax benefit in Britain has risen by more than £1 billion since Labour came to power.

Data adjusted to current prices showed an increase from £3.14 billion in 1997-98 to £4.16 billion in 2007-08.

Junior work and pensions minister Helen Goodman said the figures included all council tax benefit, whether funded by central government or local authorities. She was responding to a written Commons question from shadow housing minister Grant Shapps.

Council tax benefit is available to people on low incomes to help towards council tax bills.

Mrs May said: "These figures show the shocking growth of a dependency culture under Labour.

"The Government needs to get to grips with Britain's benefit culture and radically reform our welfare system.

"It's hardly surprising that so many people spend their lives on benefits when in some cases they can get as much money from benefits as many people earn in work. Things really have to change."

Taxpayers' Alliance chief executive Matthew Elliott added: "It's important to have a welfare safety net but the system is now a permanent crutch for far too many people.

"It doesn't do taxpayers, the economy or people trapped on benefits any good to have such a huge number of households dependent on handouts.

"The system must be structured to encourage work and learning, whereas at the moment it actively discourages people to work hard to do better for themselves."

Outside the Commons, Mr Knight said: "This Government has introduced important reforms like national minimum wage and working tax credits to ensure work does pay.

"There will always be a few per cent of people who cannot work because they are severely disabled or have very young families and it is right that we give them an adequate level of support.

"However, radical changes made by this Government have meant, that for those who can work, there is a clear system for helping them find a job as quickly as possible."


 

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