More Than Half of British Households Take More in Government Benefits Than They Pay in Taxes

It's unsustainable.

At Telegraph UK, "More than half of homes take more than they contribute: Official figures reveal record numbers of people who receive more in benefits and public services than they pay in tax":

In March the Institute for Fiscal Studies warned forcing Britain’s highest earners to foot a greater share of the tax bill is putting the long term finances at risk.

“Lumping more taxes on the rich” is not a sustainable strategy because the ability and willingness of high earners to pay more could eventually run out, the IFS suggested.

Just 300,000 high earners now pay 30 per cent of all income tax and 7.5 per cent of all tax, official figures show. Households with an average income of £104,000 paid £30,000 more in tax than they received from the state last year, ONS figures show.

The top ten per cent of earners contributed £26,984 in income and council tax, plus £10,303 in indirect taxes such as alcohol duty and VAT – a contribution to the public purse of £37,287. They received £2,284 in state cash benefits, which include child benefit, maternity pay and pensions.

The cost of educating their children came to £1,274, while they used NHS treatment worth £3,410 – meaning their total cost to the Exchequer was £7,264.

By contrast, a family with the national median income of £23,069 received £3,798 more in benefits and services than they paid in taxes last year.

They paid £4,620 in direct tax and £5,029 in indirect taxes, but received £6622 in cash benefits. They received schooling worth £2623 and NHS services worth £4,202. In total, they paid in £9,649 and received £13,477. It means for every £1 they paid in, they got £1.40 back.

The poorest ten per cent of families, with wages of £3,875 a year, paid £4,611 in direct and indirect taxes and received £13,559 in cash benefits and services. It means they received £2.94 in state support for every £1 they paid in tax.

The figures also show middle class families have seen the steepest fall in living standards since the financial crisis.

Also at the Daily Express UK, "Most households in Britain get more in benefits than they pay out in tax, new figures show," and London's Daily Mail, "Half of families receive more from the state than they pay in taxes but income equality widens as rich get richer."