UK welfare spending exceeds £133 billion, analysis shows

An analysis by the TaxPayers' Alliance reveals that Britain's welfare bill has exceeded £133 billion, marking a 24.4 per cent increase over approximately two years. The data, aggregated to March 2026, shows that eight of the ten highest-spending areas in England and Wales each exceed £500 million in welfare costs.

London and Birmingham contain the majority of these high-spending constituencies. Tottenham holds the highest welfare bill in the country at approximately £624.9 million. Other significant areas include Brent East and Birmingham Ladywood. Nine of the top ten highest-spending constituencies are held by Labour MPs, while the tenth, Birmingham Perry Barr, is held by an independent.

Universal Credit accounts for 57 per cent of the total spending, while Personal Independence Payment (PIP) represents 22 per cent. In response to the rising costs, the TaxPayers' Alliance is advocating for the reinstatement of the two-child limit and the introduction of means-testing and stricter eligibility rules for PIP.