More than 600,000 households across the UK are receiving more in benefits than the average worker earns, according to new analysis that has prompted renewed debate about welfare spending.
The figures suggest around 625,000 households were paid above £32,200 last year, broadly in line with the typical take-home salary.
A smaller number, around 16,000 households, received more than £60,000.
The analysis is likely to add to ongoing discussions about the size and structure of the UK’s welfare system, which currently costs around £155 billion a year.
Shadow Minister Neil O’Brien, who led the research, said the findings highlighted the need to review existing policies, particularly the household benefit cap. He argued that the current system does not sufficiently limit higher-value claims and called for reforms to ensure that employment remains financially advantageous.
The benefit cap, introduced in 2013 by George Osborne, sets a limit on the total amount of benefits most working-age households can receive. However, the cap does not apply if someone in the household receives certain disability-related payments.
Conservatives have proposed changes to this rule, arguing that it allows some households to receive significantly higher payments than others in similar circumstances. Their proposals include requiring adults who are able to work to meet minimum working hours or face restrictions on the total support they can receive.
Helen Whately, the shadow work and pensions secretary, said the aim would be to ensure the cap “works as intended” and that the system remains fair to taxpayers.
The data also indicates a broader rise in higher-value claims. Around 800,000 working-age households now receive more than £30,000 annually in benefits, reflecting a notable increase compared with previous years.
Labour has responded by emphasising that households receiving the highest levels of support often include individuals with significant health conditions or disabilities. A government spokesperson said these households represent a small proportion of the total and require additional assistance.
Keir Starmer is facing wider pressure over public spending decisions, including calls to increase defence funding, which may place further scrutiny on welfare budgets.
Experts say the issue is complex, balancing the need to support vulnerable people with ensuring the system is financially sustainable and maintains public confidence.
The debate is expected to continue as policymakers consider whether changes to the benefit cap or wider reforms are needed in the months ahead.
