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Britain’s benefits bill soars as nearly 200,000 households making over £100k collect

Taxpayers will fork out an estimated £41bn to foot the bill for PIP by the end of the decade

A view of pedestrians walking past the Department for Work and Pensions building, Caxton House

Almost 200,000 households with annual incomes over £100,000 receive PIP, figures show (Image: Getty)

Almost 200,000 households with annual incomes over £100,000 receive a benefit aimed at supporting those with long term physical or mental health conditions. Figures also show the number of people who claim Personal Independence Payment (PIP) is a record 3.9 million.

Taxpayers currently foot an annual bill for the benefit of £26billion, but this is set to rise to £41bn by the end of the 2020s. In 2024-25, about 197,000 households with an annual, gross income in excess of £104,000 received PIP, estimates from the Department for Work and Pensions’ (DWP) Family Resources Survey, cited by the Mail, show.

The figures help highlight the size and scale of Britain’s ballooning benefits bill.

In its submission to a welfare review led by Social Security Minister, Sir Stephen Timms, the Taxpayers’ Alliance argues PIP needs to be made fairer to claimants and those who pay for it.

The thinktank argues the “massive” increase in spending on PIP and examples of abuse have resulted in “a significant decline” in public trust.

It states in its submission that a lack of means testing has seen those on higher incomes who are capable of living independently still entitled to help from the state.

The Government has been accused of failing to rise to the challenge of bringing down Britain’s benefits bill.

Prime Minister Sir Keir Starmer was forced to abandon plans to toughen the party’s approach to PIP by Labour rebels.

Earlier this month, Conservative Party leader Kemi Badenoch accused Sir Keir of giving up on bringing down welfare costs.

Pointing to the lack of a Welfare Bill in the King’s Speech, Mrs Badenoch told the Commons the reason for its absence was because the PM had given up.

She added: “He’s given up because they (Labour MPs) have given up on him.”

Sir Keir replied that all efforts to reform welfare and measures to get young people into work are aimed at reducing the cost and the numbers of unemployed people.

He added: “They introduced the system that is broken. We’re reforming it. Did they vote to reform it with us? No, they voted to keep the broken system.”

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