UK Welfare Spending Exceeds Minimum Wage Earnings, Research Shows

Recent analyses reveal growing tensions in welfare systems both in the US and abroad, where benefits sometimes exceed earnings from low-wage work, potentially disincentivizing employment. In the UK, by 2026, individuals receiving benefits like Universal Credit and disability payments may earn more than full-time workers on the national living wage, raising concerns about long-term dependency and fiscal sustainability. Correspondingly, in the US, President Trump's tax law includes work requirements for Medicaid and SNAP, projected to cut coverage for millions, sparking debate over balancing work incentives with access to welfare amid stagnant wages and rising inflation. The expansion of Medicaid and welfare benefits has complicated the moral imperative to work, as financial rewards for working often fail to surpass welfare benefits, challenging policymakers to design systems that encourage employment without undue hardship. Additionally, a new remittance tax on money sent abroad aims to recover taxpayer funds given to immigrant households receiving welfare, highlighting the complex overlap between aid and remittances. These issues underscore the urgent need for welfare reform that promotes work while providing meaningful support and fiscal responsibility.