Newark Welfare Deficit Exceeds £140m Annually, Report Finds
Newark Welfare Deficit Exceeds £140m Annually, Report Finds
Welfare payments in the Newark constituency exceed local income tax and National Insurance receipts by nearly £150 million each year, according to a new analysis by the Adam Smith Institute. The report highlights that only 145 of England’s 575 constituencies are net contributors to the state, with Newark recording a significant annual deficit per adult.
Welfare spending in the Newark constituency exceeds local income tax and National Insurance contributions by approximately £143 million annually, a new report has revealed.
The Adam Smith Institute published findings indicating that only 145 of England’s 575 constituencies pay more into the state than they receive back. In Robert Jenrick’s Newark seat, which encompasses Bingham, Southwell, and Tuxford, the average annual generation from income tax and National Insurance stands at £7,843 per person.
Conversely, an average of £5,668 is distributed annually in welfare spending across the constituency, totaling £503 million. This disparity results in a net deficit of £1,605 per adult each year.
The report notes that among the 88,795 adults living in Newark, approximately 46,000 are employed. The overall employment rate is recorded at 79.6%, with 18.5% of the population classified as economically inactive.
State pensions constitute the largest welfare outgoing, costing £3,323 per person, which is higher than the national average of £2,620. Other significant payments include Universal Credit at £1,086 per person, Personal Independence Payments at £534, attendance allowance at £201, and housing benefits contributing £137 per person.
The financial imbalance is more pronounced in neighboring constituencies. Michelle Welsh’s Sherwood Forest constituency shows a net spend of -£2,521 per adult, with welfare payments worth £509 million compared to income tax and National Insurance receipts of just £293 million.
Similar deficits appear in other nearby areas. Ashfield records a net spend of -£3,689 per person, while Nottingham North and Kimberley show -£4,837. Nottingham South stands at -£3,181, Mansfield at -£4,044, and Broxtowe at -£2,265.
In contrast, Rushcliffe constituency maintains a positive net spend of £664 per resident annually, indicating it contributes more to the state than it receives in welfare benefits.
Y.Herrera--GM
