I think that we need to look at other things not just how to assess and minimize government payments (whether in welfare, education, civil service, NHS, government and public sector size?..). Spending in these areas does need to be tightly regulated. Job seekers, income support, etc do need increasing checks to make sure they are deserved (maybe recipients need to check in more frequently to receive the benefit and have people doing jobs in return for their benefit for which they could get references).
Taxes probably will still have to rise despite this regulation (public sector is too large in the United Kingdom the costs are growing). The structural deficit (I believe circa £155 billion) needs to be reduced ?though there are thoughts on whether a temporary dip in taxation to encourage business (e.g. corporation tax) maybe a good thing, look into tax havens (if profit is made in the UK tax it here). All of this still leads to the problem that the debt is there and will get worse and the middle aged and young are going to have to deal with it (and their children?) there will need to be tax increases as population ages (currently the generation approaching retirement is predicted to receive 118% of what they paid in) especially due to increased longevity and health care. So a bit of burden spreading is needed.
Problems: housing prices (lack of space for families)
Consequences: couples later to start families (under reproduce/fertility issues ) may lead to further decrease in number of working population later on (i.e. taxpayers), stops ?investment? going into other businesses. Cost to young and welfare state (housing benefit rises as housing costs rise).
Solutions/aids: increase stamp duty on second homes, increase capital gains taxes on second homes/BTL, Cap housing benefit, sensible bank lending (e.g. their underwriters do not insure borrowing of greater than 3-4X salary), encourage new builds (relax planning regulations), council tax for second homes at 125% (done already in some areas), maybe a version of mansion tax (but price bands are unique for the area and vary). These should all stop house price inflation being so great. MORE SOCIAL HOUSING. Check who gets social housing (do they need it, is it appropriate).
Problem: Aging population leading to rising healthcare and pension liabilities
Consequences: It has been reported that those retiring will get out of the welfare system 118% of what they put in (adjusted for taxes and a conservative estimate). Half NHS costs are for pensioners this will rise. Residential care for elderly should be seen as something you save for (it seems fashionable almost to say I will spend all my money so the state cannot make me pay for my care
). Pension liabilities (£2.2 trillion conservative estimate).
Solutions: Increase taxation, check reasons for benefits are genuine, increase NHS productivity (eg no expensive repeats of the GP contract allowing for out of hours opt out). Increase pension contributions, public sector pensions assessed (cap?alter for incomers), work longer. Thorough investigation into assets for caring homes (board and lodging and maybe personal care should be paid by person, the health component by the NHS). Encourage families to look after each other.
Problem: Education tuition fees
Consequences: debt on the young delays families etc, less money for their own pensions and investments especially as they are likely to be taxed a lot to fund the rising care bills.
Solutions: work longer, look at the decrease in funding are all the courses really needed?????????