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/

Oh dear worst in the G7!
Imf we will fair worse.
BP ex boss asking where are the fuel provisons for emergencies ?
Apparently the gov keeps saying we have a strong and diverse supply...what do they know that the ex head of BP doesn't ??

And while we argy bargy on here, I believe you think you are right, and I think, with equal certainty, that you are wrong.

I am sure you'll suggest a wealth tax next. All those rich pensioners hoarding millions. As one of them (I am happy to tell you that DH and I worked our guts out in self employment from 1990 onwards). So as a couple, we have saved some money (less than millions, but decent enough). We have a nice house, but it isn't a stately home in thousands of acres. If we were to be sufficiently peeved by a really punitive tax regime we have just enough to fuck off to a better tax regime, but DH's health issues make that unlikely. So I have real skin in the game for a better future and I don't give a shit that you are offended. A better future is better for everyone.

Are you talking to yourself?

Delulu means deranged, wrong and deluded. Does that help?

No @ForWittyTealOP I am talking to you, but the version of yourself you will become in 2040 when you are considering how to wind up your years of work.

I would put £100 down that you won't reread this and disagree with what I am saying.

I thought you were a pensioner? It's a little embarrassing to speak like that!
If you are addressing me, you're making a number of unfounded assumptions. I'm trying to get answers from people who are worried about income tax receipts apparently being less than the pension and benefits outlay. Is it statistically relevant? What are the implications? Are the government and other agencies concerned? What is the solution, one which doesn't involve net costs (which cutting benefits would involve). What impact do you feel it will have on you personally?
That kind of thing. And all I'm getting is dramatic or irrelevant statements, silly slang and stealth boasting about being rich enough to leave the country - to which I say good for you! But it's unclear, if you're so affluent, why you want people less well off than you to do even worse, financially. It's surely spite.

Yet more assumptions from you.

Recent CSJ research revealed that by 2026 there will be more than a £2,500 gap between earnings and combined benefit income. A full time worker on the National Living Wage (NLW) is expected to earn £22,500 after paying income tax and national insurance.
By comparison, an economically inactive claimant on Universal Credit (UC) for ill health with the average housing benefit and Personal Independence Payment (PIP) would receive an income of around £25,000, rising to £27,500 for those awarded PIP’s highest rate.
New analysis published today finds that, as of May 2025, there were one million people claiming a combination of UC health, housing and PIP, following a dramatic increase in awards for anxiety and depression since the pandemic.
Seven in ten new UC Health assessments now involve mental health conditions, and PIP claims for anxiety and depression are up threefold since 2019.

Out of interest, what does the full time worker receive after claiming PIP and any other associated benefits?
I'm joking because I know you can't answer really. Just pointing out the futility of your question where you quite deliberately compare apples with oranges in order to achieve absolutely nothing (except maybe a fuzzy glow for yourself as you whip up a bit of hatred on behalf of your powerful puppet masters).

What's happened with your ChatGPT?

Also - the CSJ? You are having a laugh? Iain Duncan Smith has to justify his existence and the absolute misery that lies in his wake somehow I suppose. Ever heard of credible sources?

Wow you keep going with what you think is your killer blow, don't you!

I am 70, therefore in receipt of the pension, Also the parent of a young man of 26, so reasonably up to speed with today's vernacular. I brought the disconnect between income tax receipts and benefit outgoings to YOUR attention if you read attentively.
Is it statistically relevant? Yes, it is. The UK is spending so much servicing the debt incurred in earlier years that our freedom is circumscribed. We cannot afford generous (even adequate) welfare, plus the NHS, plus a basic level of defence. I am quite glad I am old, because IMO the future looks like shite, from every angle I consider it.

It's really not "today's vernacular" 🤣
Explain what you mean. You're giving meaningless sentences that wouldn't even get you a pass grade at GCSE.

Only 1 in 6 people receiving PIP are employed.

Where is that "my point your head - whoosh!" gif when you need it?

They’re pretending to not know what you mean and doing the whole ‘what even is that? That makes no sense? Write it again? You’re a bit daft aren’t you? That makes no sense. What does that even mean?’ Ad infinitum which usually means you’ve won.

Probably where your arguing skills are - aka not here.

And the laugh emoji. I've never seen such poor debate and empty rhetoric from you and the other poster.

It doesn’t even matter what we say. To you benefits are a moral pillar that are beyond questioning and you will fight tooth and nail for them to stay that way and not be viewed as a financial matter. Whatever I say will be met with faux ridicule and insults.

Drawls... terribly terribly sorry, I did O & A levels, and a BSc Econ and I hold QTS. DFOD. I assumed you were capable of following a conversation.

Oh do point out where I've said anything approaching that! I'll wait...

They’re not. But you must be ridiculed as you don’t have a ‘2026 writing style’.

What does that mean? Do you want a list of my qualifications too? You still can't explain what you mean (and you still haven't expressed any remorse for your appalling language).

😂😂😂
This was quite obvious many posts ago