AIBU to very nervous about what Reeves is doing to the economy?

[ProudAmberTurtle]

The data for the last financial year is out and, for the first time in British history, the benefits bill (£333 billion) was higher than income tax receipts (£331 billion).

This didn't even happen during financial crises like when the banks were bailed out in 2008-09, or during Covid when the government paid private sector staff's wages.

What's worse is that the government did not predict this and the benefits bill is projected to rise significantly over the next three years to about £390 billion.

In fact, from what I can understand, income tax receipts have always been significantly higher than the benefits bill, and there's always been an understanding between the two main parties since the 1940s that that needs to be the case for an economy to function properly.

I've worked very hard for more than a quarter of a century and always plan for the future, ie paying the maximum in NI so that my partner and I will receive the full state pension. For the first time in my life, this year the amount I'm earning in savings is going up at below the rate of inflation, even though I've got the highest interest rate available, because I've hit an income tax threshold (£50k) which means 40% of everything I gain in interest goes to the Treasury. This means my savings are actually depreciating in value.

AIBU to think this is just the start? That it's inevitable that taxes will have to rise even further and the state pension will be cut?

www.telegraph.co.uk/news/2026/04/04/labour-welfare-bill-income-tax-revenue/

Well said. Debate on economic policy and welfare reforms are one thing, but the gutter-level comments and ignorance from some on this thread are quite something - seems futile trying to engage with.

Parents can and should feed their own kids. My responsibility is to me and my family, not to random strangers.

They could still get their precious benefits (child benefits and standard UC). Just not the child element.

If you pack in your job and go on benefits, you will get nothing. You can't choose to leave work and go on welfare. Even if you do, you will get £400pm.
Hardly the life of riley.

As I have said, we all make our choice on which side of that particular line we choose to stand.

Do you truly believe that lifting the child benefit cap will alleviate child poverty ?

Yanbu.

I think it's important to take all available steps when working towards alleviating child poverty. I agree that it needs to be the highest priority of a nation's government.

Most of the money goes to pensioners, perhaps they should start means testing them.

Nasty attitude towards those who worked their asses off to give you a better future.

Yes!

You can tell people this again and again but they don’t want to hear it.

Why don’t you then?
This is the most boringly repeated shit.
Go ahead, give up your job tomorrow. Do you have disabled members of your family? Are you paying rent in an unstable rental market, are you a single parent to young children?
Benefits are not easy street for the vast majority of people.
Give up your job. Let your partner/husband give up theirs and then come back on here and tell us what a wonderful life you are having on the easy life you think you’ll be having. With all those thousands of pounds you think you’ll be getting as voluntarily unemployed, home owners of nearly adult children.

I find out on Monday whether I’m one of the people being made redundant at my workplace. Everyone is scared. The job market is a wasteland. Honestly times feel scary at the moment.

Sorry to hear this. This is the real impact of Labour’s policies which some are ignoring.

A significant amount of research and charities concluded that lifting the two child benefit cap would be the easiest, most efficient way to help alleviate child poverty. Child Poverty Action Group state that scrapping it will lift 350,000 children out of poverty and 700,000 out of less deep poverty.

However, it is by no means enough on its own of course, which is why the government are also focusing on improving safer housing, breakfast clubs, free school meals, the new Sure Start type centres, etc. Whatever judgements people make about parents, if we want to help deprived kids improve their life chances then we’ve got to look at ALL the factors that impact on this. Not suggesting that this is your view, but a wider point: it is blinkered and wrong to suggest it is solely down to parental responsibility.

Nearly 80% of people support the goal of working towards ending child poverty, which makes you wonder about the other 20% - to be frank, if one of my children were in that 20% as adults, I’d feel like I’d failed in my parental responsibility, regardless of the amount of taxes I have paid or money I’d spent raising them.

If you want to deal with child poverty you deal with housing costs, wages and work incentives.

You don't give massive handouts that disproportionately benefit people who aren't even from this country.

Aren't even from this country? Your mask is slipping.

A large number of people who come here come on visas that have No Recourse to Public Funds, as in no benefits for them. These are mainly work, student and family visas

Once they get indefinite leave to remain then some may be able to claim, but they need to prove right to reside, and an habitual residence test

Asylum seekers are not allowed mainstream benefits until their claim is settled. While their claim is being processed they get accommodation and just under £50 a week paid onto an ASPEN card if no meals provided, less than £10 a week if meals provided.

Good luck. I remember how scary it was in the early 90s when the economy was in a very sharp cyclical downturn. It recovered then and will do again but it’s awful for the people who experience the worst of the effects.

And there it is.
Not about Rachel Reeves at all. Benefit bashing AND anti immigration.
I really have to stop thinking that these OPs want to have a considered conversation about economic nuances and specific government policies.

As is always the case - if anyone points out economic facts surrounding immigration, the racism accusations and implications begin.

It doesn't change the facts though. Yes the lifting of the two child benefit cap was an ineffective way if reducing poverty and far more a virtue signal so backbench MPs could show disproportionately non-British constituents that they have their backs.

It’s about balance. People need to be helped but a shift in attitudes is needed so that people are more responsible for their life choices. Unfortunately I don’t know how we do this. There are parents who see no problem at all in their kids not having a decent pair of shoes or a hot meal every day whilst they spend money on nails, brows, drink and vapes. The kids suffer due to their parents choices so the state must step in and help the kids with fsm etc but at no point is the parent ever held accountable for their poor choices. The two child benefit cap has been in place for ages and yet people chose to have more children when others like myself who would have loved more kids made sure that there was no way we could have more than two kids.
The group of people I feel most sorry for are the disabled. No other group seems to be demonised as much as them and receive so little.

It’s slightly more complex and nuanced than you’d have us believe.

https://migrationobservatory.ox.ac.uk/resources/briefings/the-fiscal-impact-of-immigration-in-the-uk/

That's from October 2024 - 18 months before the two child benefit cap was lifted!

So let's discuss this.

In order to get benefits you need to be a British citizen, have indefinite leave to remain, or a settled asylum claim.

Do you have an issue with these groups getting benefits?

Obviously. The cap was only lifted last week. It shows trends over years.

I have an issue with the government making us all poorer by increasing our already too high taxes, and spending the money in a deliberately divisive way.

Do you think housing costs, wages and work incentives are all perfect at the moment?