Domesday Live

How much does the government spend on benefits and pensions?

Benefits and pensions are the biggest single part of public spending, bigger than the NHS or schools. The state pension is the largest item, and the cost follows how many people qualify, so it rises as the population ages.

Why it happens

• The state pension is the biggest item. Almost everyone above state pension age gets it, and it goes up every year, so it takes a large and growing share of the total.
• More older people. People are living longer and a large generation is reaching retirement, so there are more pensioners for every person of working age.
• Support for people of working age. Universal Credit, help with housing costs and disability benefits make up much of the rest. Claims linked to long-term health conditions have risen in recent years.
• The cost follows demand. Benefits are not capped like a department's budget. The law says who qualifies, so the bill goes up when more people qualify or when payments rise with prices.