UK welfare outlays outpace infrastructure investment by £1.1 trillion since 2006
Research by the Centre for Social Justice shows that spending on working-age benefits has exceeded capital investment in schools, rail and other infrastructure by £1.1 trillion between 2006 and 2025.
A new Centre for Social Justice study reveals that UK welfare spending on working-age adults has dwarfed investment in key infrastructure by £1.1 trillion from 2006 to 2025. Converting historic data to 2026 prices, the report notes that benefits now represent about 4.6 % of GDP, up from 2.5 % in the post-war era, while capital spending is only 2.9 % of GDP. The authors contend that successive governments have relied on welfare as a stop-gap for struggling regions, reversing the post-World War II trend of investment-led growth.
Ben Gregg, CSJ’s welfare head, warns that this “anaesthetic” hinders prosperity and calls for a shift toward job-creating projects. The findings come as Labour ministers face reviews by Alan Milburn on youth unemployment and Sir Stephen Timms on disability payments, and as officials pledge a £120 billion boost to public investment and a new 10-year infrastructure strategy.
Why it matters
The gap between welfare outlays and infrastructure funding raises questions about the UK’s long-term economic growth strategy.
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