| One in five homes relies solely on handouts |
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| Written by Tom Clougherty | |
| Saturday, 01 September 2007 | |
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Here is
a story I missed earlier in the week. On Wednesday the Office for
National Statistics released figures showing that one in five
households (23.9 percent in London) rely entirely on benefits. Terrible
enough on its own, but when you take account of the fact that this
figure excludes pensioners and students, it becomes clear just how
enormous the problem is. He most obvious consequences are economic ones. Having that many people out of work (and therefore unproductive) is a complete waste of the country's human resources. The high taxes required to support a welfare state that large are a significant drain on our economy too. Both these things hurt our competitiveness, reducing economic growth and encouraging investors to look elsewhere. It is also pretty clear – with more than 3 million households relying on handouts when labour is still in demand – that government benefits have had a serious negative impact on the incentives to work and make money. Indeed, only one in five of the homes listed as workless contain anyone who is even looking for a job. Ultimately though, it is the social effects of welfare that are the most damaging and corrosive to society. As the National Audit Office warned, those living in workless households are at risk of falling into a spiral of ill-health and crime. And with a system that positively encourages family breakdown, it is all too likely that this vicious circle will continue from one generation to the next. Far from creating a more equal Britain, the welfare state has fostered the growth of a vast underclass. Without serious reform, this problem is only going to get worse. To buy James Bartholomew's excellent book on the subject, click here.
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