Goodwill to all men: why we should be astonished by the UK welfare state

Let’s hear it for the taxpayers, says Merryn Somerset Webb. They provide a guaranteed income for every person in the country, plus state funded education and healthcare. And they ask for very little in return.

Having read a good amount recently on food banks in the UK this week, I had a little wander around the benefits system. I looked at a postcode in the southeast of England to see just how much you get from the welfare statein the UK if you aren't working at all.

I started with a couple with two children and added up their housing benefit, jobseeker's allowance, tax credits and child benefit. The result? A tax-free income of £24,269. That's the equivalent of an earned (and hence taxable) income of £32,000. That's very significantly more than the number we are always given as the UK's average wage.

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Merryn Somerset Webb

Merryn Somerset Webb started her career in Tokyo at public broadcaster NHK before becoming a Japanese equity broker at what was then Warburgs. She went on to work at SBC and UBS without moving from her desk in Kamiyacho (it was the age of mergers).

After five years in Japan she returned to work in the UK at Paribas. This soon became BNP Paribas. Again, no desk move was required. On leaving the City, Merryn helped The Week magazine with its City pages before becoming the launch editor of MoneyWeek in 2000 and taking on columns first in the Sunday Times and then in 2009 in the Financial Times

Twenty years on, MoneyWeek is the best-selling financial magazine in the UK. Merryn was its Editor in Chief until 2022. She is now a senior columnist at Bloomberg and host of the Merryn Talks Money podcast -  but still writes for Moneyweek monthly. 

Merryn is also is a non executive director of two investment trusts – BlackRock Throgmorton, and the Murray Income Investment Trust.