Sunday 17 January 2010

The fun never stops ...

Here's page 89 from the Department of Work & Pensions' departmental report (click to enlarge):
As you can see, their total budget for next year is £163 billion, a bit more than a tenth of GDP, which is fair enough in the grander scheme of things, you can't just let a third of the population starve (11 million pensioners, 5 million dole claimants plus offspring). The fun part is the DEL figure of £9.698 billion, which is their administration costs.

Yup, even ignoring the fraud and error that adds at least five per cent to the cash cost of benefits paid out, their running costs are six per cent of what they pay out, and this does not include the administration costs for Housing & Council Tax Benefit, which are paid out locally (and which are almost certainly higher in percentage terms, as the amounts paid out are usually lower) or the costs of paying out Tax Credits, which HM Revenue & Customs quote as 3%.

This is yet another argument for flat-rate, non-means tested benefits, of course.

6 comments:

bayard said...

"Here's page 85 from the Department of Work & Pensions' departmental report"

I'm sure they don't expect anyone to actually read stuff like that, certainly not as far as page 85.

Old Holborn said...

Oh. My. God

Witterings from Witney said...

Go along with all of that MW! Even my limited mathmatical brain can agree!

MW for Chancellor in my government - if I ever get to live long enough. Dont get your hopes up MW - don't know how long I got left!

James Higham said...

Mark, not wishing to be stupid but is 6% a huge amount for administering something?

Non-means tested benefits - what would be the criterion for eligibility?

Louisiana said...

I know that teenagers and first year college students are supposed to have fun. But what about a person that's over 25?

Louisiana said...

I never had fun in my life when I was a teen. Now I'm 22 now and I feel it's too late for me to have fun since I'm old now.