Figures from the Office for National Statistics (ONS) show that many households in the UK now receive more from the State than they pay into public funds.
Data shows that in 2012-2013, approximately13.8 million households received more in benefits than they paid in tax when education and NHS care was factored in.
The ONS found that among the poorest households in the UK, many relied on benefits, with the poorest one-fifth of low-income households relying on welfare benefits for 56.4% of their income.
The figures also reveal that wealthy households pay an average of £29,500 in direct and indirect tax each year – while the poorest one-fifth of low-income households pay on average £4,700 in tax.
However, pro rata the wealthiest and poorest households paid a similar percentage of their gross earnings in tax – the wealthiest paid 35.1% of their income to HMRC and the poorest households paid a slightly higher percentage of their income at 37.4%.
The ONS says that just 3.2% of the wealthiest households receive cash benefits, however.
The wealthiest households were also found to earn around 15 times more than the poorest – the wealthiest fifth earn £81,300 gross on average, compared with just £5,500 for the poorest fifth.
However, tax and welfare benefits redistributed wealth to give the wealthiest households an income of £59,900 annually and the poorest £15,600 annually.
Duncan Lewis Housing Solicitors
Duncan Lewis housing solicitors can advise on Local Authority housing and housing benefit, as well as disrepair of rental property, Landlord & Tenant disputes and unlawful eviction.
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For expert advice on housing law, contact Duncan Lewis housing solicitors on 020 7923 4020.