Covid 'convinced Brits they can have something for nothing', Tories claim trends now
Tories voiced alarm that Covid created a 'something for nothing' culture in Britain today as it emerged over half received more from the State than they put in for the first time.
Some 36million people live in households that get more from the Government than they pay in tax, according to a study by Civitas.
The findings are based on the most recent official data from 2020-21, and reflect the huge support put in place by ministers to keep the country going during lockdown.
The estimates include the amount individuals receive from 'benefits in kind', such as use of the NHS and state education, as well as pensions for people who had contributed through their working lives.
It does not take account of the massive furlough scheme - but the level will also have been affected by the dramatic fall in earnings for millions reducing tax bills.
The spike to 54 per cent of households being net beneficiaries compares to the two-fifths - 24 million people - recorded when Tony Blair was in power at the turn of the millennium. The figure was even lower under Thatcher, although the population has been aging significantly. It has surged during recessions, and not fallen back to previous levels afterwards.
MPs warned that the huge government support provided during the Covid pandemic could have 'changed the psyche' of the country.
Some 36million people live in households that get more from the Government than they pay in tax, according to a study by Civitas. The findings are based on the most recent official data from 2020-21, and reflect the huge support put in place by ministers to keep the country going during lockdown
The poorest fifth of households receive £17,600 more on average in welfare and non-financial benefits from the State than they pay in tax
Britons are more dependent on the State than ever before, a bombshell report reveals today. Prime Minister Rishi Sunak is pictured on January 19
The think-tank's report highlighted that the top 10 per cent of earners pay 53 per cent of all income tax.
Civitas said that made the levy a 'stealth wealth tax'.
The poorest fifth of households receive £17,600 more on average in welfare and non-financial benefits from the State than they pay in tax.
Senior Tories responded by demanding tax cuts to boost growth and a fresh debate about the role and size of the State.
Meanwhile analysis from Labour published today showed there are 1.9 million over 50s receiving out of work benefits in May 2022 - a rise of 300,000 compared to pre-pandemic levels.
Iain Duncan Smith, former Conservative leader and ex-work and pensions secretary, said: 'Lockdown changed the psyche of the British people.
'For all those years, we told them you can't get something for nothing, and all of sudden they did. The British public thought the Government could do it all – even pay their salaries and they don't have to work.'
The Civitas analysis used data from the Office for National Statistics to compare how much tax people pay with the benefits they receive from the Government.
These include cash welfare payments, such as Universal Credit, Jobseeker's Allowance and the state pension, and non-financial benefits, such as use of the NHS and social care, free school meals and subsidised housing.
The proportion of those who get more from the State than they put in has climbed steadily over several decades, and is higher now than under either Sir Tony or Gordon Brown's premierships.
The number who get more from the state than they pay in tax is up from 24 million, or two-fifths of households, when Tony Blair was in power at the turn of the millennium. Tony Blair is pictured at the WEF forum on January 19
Sir Iain Duncan Smith, the former Conservative leader and ex-work and pensions secretary, said: 'Lockdown changed the psyche of the British people'
The nation's reliance on the State spiked between 2020 and 2022, in part due to the massive jump in health spending, the fall in VAT receipts during lockdowns, and a growing benefits bill.
The report's authors said the true headline figure was likely to be even higher than 36 million people because their findings excluded the £70 billion furlough scheme.
The latest data also does not take account of the tens of billions of pounds put aside
