What was claimed
For the first time ever, the amount the government spends on benefits is more than the amount it receives in income tax.
Our verdict
False. Welfare payments have been higher than income tax receipts for at least the last 16 years.
Katie Lam wrongly claims welfare has exceeded income tax ‘for the first time ever’
The Conservative MP and Opposition Assistant Whip, Katie Lam, has repeated a false claim about tax and benefits that we fact checked last month.
Speaking on the World at One [31m00s] on BBC Radio 4 on Wednesday, Ms Lam said: “We’re now in a situation for the first time ever where the amount that we are paying in benefits is more than the government is taking in income tax.”
This isn’t correct, as both the Office for Budget Responsibility (OBR) and the Institute for Fiscal Studies (IFS) have confirmed with us.
Total welfare spending—which includes the state pension as well as universal credit and other benefits—is estimated to be higher than income tax receipts in 2025/26. But following our last fact check about this, we’ve been able to establish with official figures from the OBR that welfare has been higher for at least the last 16 years.
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Indeed, far from being the first time this has happened, OBR figures suggest that 2025/26 may be the last for the foreseeable future, until the end of the forecast period in 2030/31.
It’s worth remembering that these figures don’t just show the money raised from people who work and the money spent on people who don’t. Many working people receive benefits, and many people who are not working—including pensioners—pay income tax. Working people pay National Insurance too.
We’ve approached Ms Lam to ask about her comments, but at the time of writing she has not replied. We found Ms Lam’s claim with the help of our AI tools.