More than 600k households receive more in benefits than the average worker’s salary (Image: Getty)
More than 600,000 households received more in benefits than the typical UK worker’s salary after tax, a shocking Conservative-led analysis has revealed. The figures show that 625,618 households were handed over £32,200 in welfare payouts in 2025 – slightly more than the median annual salary of a British worker after tax is deducted – despite the introduction of a benefits cap.
The analysis also revealed that 16,000 households received over £60,000 in welfare payments – almost twice the top of the median annual take-home pay for an individual worker in the UK after tax. Calling for a reform of “all types of benefit”, Neil O’Brien, the shadow minister for policy development, who conducted the analysis, said: “The real-terms growth and scale of really large benefit claims from working-age households make the case for a return to welfare reform stronger.
READ MORE: State pensioners under 76 given full £44.20 extra cash in May
READ MORE: Tories promise huge benefits change that would save UK £1bn a year
The number of working-age households receiving more than £30,000 a year in benefits has risen by over a third to 800,000 (Image: Getty)
“We need reforms across all types of benefit – and particularly the household benefit cap, which is no longer really constraining the growth of really large claims,” he added, according to The Telegraph.
“Some households are getting a lot more in benefits than the average person gets to take home after working full-time. We need a system that’s fair to taxpayers as well as those benefiting from it.”
Labour, however, maintained that households receiving this level of support had the “highest level of need”, with one or more family members suffering severe disability.
The analysis indicates that the number of working-age households receiving more than £30,000 a year in benefits has risen by over a third to 800,000. This increase comes after the Department for Work and Pensions (DWP) began using administrative data on actual incomes rather than relying only on survey responses. Of these households, around 667,278 received more than the average salary of £32,200 in 2023/24 – a record high and 30% higher than the previous year. The figure fell to 625,618 in 2024/25, but remained twice as high as the 392,000 recorded in 2019/20.
George Osbourne introduced the benefit cap in 2013 to encourage people into work (Image: Getty)
The 600,000-plus families account for one in 30 households in the UK. Of those, 267,000 received more than £40,000 a year, 91,000 were paid more than £50,000 and 16,289 received more than £60,000 a year in 2024/25 – an 8.5% increase on the previous year.
The benefit cap, introduced in 2013 by George Osborne, the Chancellor at the time, was designed to limit the maximum amount of benefits that a working-age household can receive to encourage people into work. As of 2026, in Greater London, this is up to £442.31 per week for couples or families and £296.35 for single adults. For those outside of London, it is up to £384.62 per week for couples or families and £257.69 for single adults.
However, a significant loophole exists. If the household includes one adult receiving a disability benefit, even if other adults in the family are fully able to work, they all avoid the benefit limit. The Conservatives are proposing to close the loophole that allows uncapped benefits for an entire household when only one adult is eligible for the Personal Independence Payment (PIP).
They will require all adults who are able to work to be employed for at least 16 hours a week and face a cap if they are not.
The DWP said Mr O’Brien’s figures were an overestimation (Image: Getty)
Helen Whately, the shadow work and pensions secretary, said: “The household benefit cap means you can opt out of work and still get thousands of pounds of extra benefits.
“We will make the cap do what it’s supposed to do – make sure work always pays. Welfare should be a safety net, not a lifestyle choice.”
The DWP said Mr O’Brien’s figures were an overestimation. A Government spokesman said: “The two per cent of households receiving this level of support have the highest needs, and require extra support.
“The benefit cap exempts households where one or more residents have a severe disability requiring extra support and are among the most vulnerable in our society, and it is right that they receive it.”
