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More Than One Million Foreigners Claiming Benefits
Households with at least one foreign national claimant received more than £7.5 billion in universal credit in 2023, figures from the Department for Work and Pensions (DWP) show.
Foreign nationals become eligible for universal credit and other benefits on the same terms as British citizens once they are granted indefinite leave to remain and have settled or refugee status. Telegraph.
How long can this go on?
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No best answer has yet been selected by Khandro. Once a best answer has been selected, it will be shown here.
For more on marking an answer as the "Best Answer", please visit our FAQ.From the Office for Budget Responsibility (OBR),
"In 2024-25, we expect VAT to raise £171.2 billion (this measure of VAT excludes refunds of VAT made to certain public sector organisations). That would represent 14.9 per cent of all receipts and is equivalent to £6,000 per household and 6.1 per cent of national income."
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Sounds like a gain to the Exchequer to me.
"Sounds like a gain to the Exchequer to me."
It doesn't matter how much VAT raises in total or what the average collected from each household is.
Somebody living entirely on benefits receives all their spending money from the Exchequer. Any money they pay in VAT or any other indirect tax or excise duty is simply the recovery of a small part of the Exchequer's initial outlay.
The Exchequer (i.e. the taxpayer) suffers a net loss to that individual.
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