{
  "id": 14047192,
  "title": "‘Economic anaesthetic’ of welfare spending dwarfed capital investment by £1.1 trillion",
  "url": "https://urgent.news/2026/10/12/economic-anaesthetic-of-welfare-spending-dwarfed-capital-investment",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-12T21:00:00.000Z",
  "source": {
    "name": "City AM",
    "slug": "city-am",
    "url": "https://www.cityam.com/economic-anaesthetic-of-welfare-spending-dwarfed-capital-investment-by-1-1-trillion/"
  },
  "original_language": "en",
  "account": "New research reveals that welfare spending for working-age people surpassed investment in key infrastructure like schools and trains by £1.1 trillion from 2006 to 2025, according to a report from the Centre for Social Justice. The study found that benefits spending totaled £1.1 trillion more than capital expenditure during the same period, prompting concerns over the role of welfare in compensating for weak local economies. Historically, benefits spending made up 2.5% of GDP between 1949 and 1975, but rose to around 5% between 1975 and 2016, while public investment dropped from 2.9% to just 4.6% of GDP. Authors of the report argue that welfare spending has become an \"anaesthetic\" keeping parts of the country numb during economic failure, and urge a re-evaluation of the UK's welfare state design.",
  "summary": "Spending on benefits for working-age people dwarfed investment in key infrastructure such as schools and trains by £1.1 trillion between 2006 and 2025, new research has found. The Centre for Social Justice said that spending on disability support and other forms of welfare racked up to £1.1 trillion more than capital expenditure in the same [...]",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}