# UK welfare spending and economic investment trends

> Live situation record from CLSTR: https://clstr.news/situations/uk-welfare-spending-and-economic-investment-trends
> Updated: 2026-10-14T16:35:00.000Z. Sources: 6. Developments: 2.

A report by the Centre for Social Justice (CSJ) indicates that United Kingdom welfare spending has significantly outpaced infrastructure investment over the last two decades. Between 2006/07 and 2024/25, the UK allocated £1.6 trillion to working-age benefits, which is £1.1 trillion more than was spent on transport, housing, science, technology, and economic development.

The CSJ report, titled ‘State of Dependency’, notes a shift in economic priorities where welfare spending now accounts for 5% of GDP, while infrastructure investment remains at 2.5%. Ben Gregg, head of welfare at the CSJ, stated that governments have used welfare to ‘numb the pain’ of economic decline rather than reversing it through investment.

Further data from the Department for Work and Pensions (DWP) shows that welfare expenditure for households containing at least one foreign national has risen, with Universal Credit payments to such households reaching £11.92 billion in 2025. This is a 25 per cent increase from the £9.5 billion paid in 2024. The CSJ estimates that total support costs for foreign nationals, including those receiving Universal Credit, sickness benefits, and the state pension, reached £23 billion last year and are projected to reach £27 billion by the end of the decade.

## Timeline

### 2026-10-14: UK welfare spending for foreign national households rises to £11.92 billion

Data shows UK welfare spending for households with foreign nationals reached £11.92 billion in 2025, with total support costs for non-citizens estimated at £23 billion last year.

3 sources. https://clstr.news/cluster/uk-welfare-spending-for-foreign-national-households-rises-to-1192-billion

### 2026-10-12: UK welfare spending surpassed infrastructure investment by £1.1 trillion

A Centre for Social Justice report finds the UK spent £1.1 trillion more on welfare than infrastructure over the past 20 years, noting a shift in GDP allocation toward benefits over economic investment.

4 sources. https://clstr.news/cluster/uk-welfare-spending-surpassed-infrastructure-investment-by-11-trillion

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Cite as: UK welfare spending and economic investment trends. CLSTR, https://clstr.news/situations/uk-welfare-spending-and-economic-investment-trends