Welfare Cuts: Punching Down Instead of Up
Posted on March 19, 2025
The government’s latest round of proposed welfare cuts is, predictably, being framed as a crackdown on fraud and fairness. For those of us who have seen first-hand the scamming that goes on within the benefits system, it’s tempting to nod along. No one likes the idea of people playing the system while others work hard. But once again, the real focus seems to be on those at the bottom, while the industrial-scale abuse of Britain’s wealth by the super-rich remains largely untouched.
The Real Cost of Fraud: Benefits vs Tax Evasion
Let’s look at the numbers. The estimated loss from benefit fraud in the UK sits at around £8 billion a year. A hefty sum. But compare that to tax avoidance and evasion, which is thought to cost the UK anywhere between £35 billion and £70 billion annually, depending on which estimates you use. The difference is staggering. Yet, instead of making serious moves to reclaim these billions from offshore accounts, trust funds, and corporate loopholes, the government’s energy is once again directed at the easiest target—the poor.
Start at the Top, Not the Bottom
By all means, let’s have a system that holds abusers accountable. No one should be able to take more than their fair share, whether they’re falsely claiming benefits or stashing wealth in the Cayman Islands. But if we really want to restore integrity, shouldn’t the clean-up start at the top of the money tree and work its way down? Surely, that would earn more respect than a relentless pursuit of those already on the edge of society.
The reality is that some people fiddle a few extra quid because they see those in power, often with links to government and the media, quietly funnelling millions out of the country, entirely legally. They see a system where the rich write their own rules while the poor are treated as easy prey. We are defined by those who lead us, and when a government chooses to go after those on the breadline rather than those siphoning off national wealth, it tells us everything about their priorities.
The Real Scandal
If someone is genuinely living the high life by scamming the benefits system and gets caught—good. No sympathy. But let’s be honest about where the real losses are. Cracking down on struggling individuals while pandering to so-called “wealth creators”—who are, in reality, wealth extractors—isn’t about fairness. It’s about convenience. And that’s the real scandal.
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Norman House
March 19, 2025 (1:21 pm)
When I heard about this, I thought I’d been sleep-walking for a few years and the Tories had got back into government whilst I was asleep.
The optics of this are not good, a bit like the management of winter fuel payments. Maybe the objective is to give support those who are on benefits but could work (with the right support) into work. But the reality is that with a broad-brush approach, there will be a significant number of people who have benefits reduced when they can’t afford it.
You have to change the system to enable people to get into work (e.g. physically disabled people who could work with the right support and infrastructure) first, to reduce the strain on the benefits system. Or ensure those with mental health issues, e.g. depression/anxiety, have access to mental health services, rather than waiting months or years to get support, while their condition worsens..
Ultimately in both cases this could bring down the overall cost of the benefits system, but it is not an overnight thing and actually needs investment not swingeing cuts.