UK state pension expenditure 2023 | Statista (2024)

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UK state pension expenditure 2023 | Statista? ›

The government of the United Kingdom is expected to spend approximately 112.5 billion British pounds on state pensions in 2022/23, compared with 112.9 billion pounds in the previous year.

Social security spending in Great Britain

Around 55% of social security expenditure goes to pensioners; in 2024 to 2025 we will spend £167.6 billion on benefits for pensioners in GB . This includes spending on the State Pension which is forecast to be £138.1 billion in 2024 to 2025.

If you receive the new State Pension, the full amount you'll receive for the 2023/24 tax year will be £203.85 a week (compared to £185.15 a week for the 2022/23 tax year). You can claim the new State Pension if you're: a man born on or after 6 April 1951.

Government expenditure on benefits in the UK 1948-2023

In 2022/23 the UK government is expected to spend approximately 231.4 billion British pounds on benefits, compared with the previous year when benefit expenditure was 234.2 billion pounds.

How much is spent on benefits? In August 2023, 22.6 million people were claiming some form of benefits, in England, Scotland and Wales. In 2023-24, the government is expected to spend £265.5bn on paying pensions and benefits, just over half of which (£134.8bn) goes on benefits to pensioners.

Pensioner benefit spending in 2023-24 represents 11.3 per cent of total public spending (up from 10.7 per cent in 2022-23), and 5.1 per cent of GDP.

Of this total, spending on the state pension, pension credit and winter fuel payment comprises £132 billion, or 5.1% of national income (the vast majority of the rest of the social security spending is on disability benefits and means-tested housing benefit).

This means, from April 2024: The full state pension rose from £203.85 a week to £221.20 a week, or £11,502 a year. The basic state pension rose from £156.20 a week to £169.50 a week, or £8,814 a year.

The full rate for the New State Pension for the 2024/25 tax year is £221.20 (up from £203.85 in 2023/24 - an increase of 8.5%). If you and your partner have built up the full 35 qualifying years, you'll get double this amount as a married couple. This comes to £442.40 between you.

You usually need 35 qualifying years of National Insurance contributions to get the full amount. You'll still get something if you have at least 10 qualifying years - these can be before or after April 2016.

What is the UK government's biggest expenditure? ›

Pie chart of UK government spending, 2023-24. The most significant area of government spending is welfare (£341 billion in financial year 2023-24), with the largest single element of this being for the State Pension, which totals £124 billion.

France has the largest government expenditures among OECD countries. Public expenditures were 55.6% of France's GDP in 2019, the highest in the OECD (Figure 2.22). The main driver is social protection expenditures of 23.9% of GDP, almost double the OECD average of 13.3% (Figure 2.25).

white British families (51%) were the most likely to receive a non-income related benefit, including the State Pension – families from the Chinese ethnic group (23%) were the least likely to.

In 2021/22, 60 percent of households in Nort Eas England and Wales were receiving a type of state benefit, the highest among regions in the United Kingdom in that reporting year.

Analysis by Civitas of Office for National Statistics (ONS) data from 2020-21 showed a record 54.2% of people (36 million) now live in households which received more in benefits than they contributed in taxes. This includes non-cash benefits such as NHS and education services.

Roughly 14 percent of the budget provides assistance to families and individuals in need. This includes refundable tax credits, Supplemental Security Income, Supplemental Nutritional Assistance Program (SNAP), low-income housing and school meals.

In 2020, this ratio peaked in Greece at 17.8 % of GDP, followed by Italy, where expenditure was 17.6 % of GDP. At the other end of the range, Lithuania, Hungary, Malta and Ireland each reported that expenditure on pensions accounted for less than 8.0 % of their GDP.

The UK pensions market size was GBP15. 4 billion in terms of annual premium equivalent (APE) in 2022. The market is expected to achieve a CAGR of more than 2% during 2022-2027. Due to a rise in workplace pension enrolment, it achieved a very strong growth rate in 2022 while all other pension types contracted.

What is the market size of the Pension Funding industry in the UK? The market size of the Pension Funding industry in the UK is measured at £133.6bn in 2024.