Birmingham is 'Britain's benefits capital', new research finds
A new report has found Birmingham to be one of the fastest growing welfare spenders in the country.
Last updated 26th Oct 2026
Birmingham has been named as a major benefits spending hotspot in a new interactive welfare map released by the TaxPayers’ Alliance.
The group says five of the 10 constituencies with the largest percentage increases were in city, including Birmingham Hall Green and Moseley which recorded the fastest growth in welfare spending, rising by 37.1 per cent in just over two years.
Birmingham Ladywood, which includes Winson Green, the setting of Channel 4's Benefits Britain, had the third-largest welfare bill in England and Wales at £590.7 million.
The area also had the second-largest housing benefit bill, at £118.1 million, and the second-largest cash increase in total welfare spending, at £143.2 million.
William Yarwood, Campaigns Director at the TaxPayers’ Alliance, said parts of Birmingham seem to have been left at "the bottom of the pile":
"There is dense concentrations of welfare claimants, meaning that these areas in many ways have actually been left behind in regards to economic growth, in regards to job creation, in regards to a bunch of other things which actually would help bring the welfare bill down."
He said the government needs to take a "carrot and a stick approach" to welfare reform, by supporting families in need, while also allowing businesses and the market to grow the economy and consequently create more jobs for people on benefits.
The campaign group says its Welfare Map uses official data to show benefit spending across England and Wales by constituency and local authority.
It includes total benefit spend, claimant numbers, welfare claims by age group, Personal Independence Payment spend, claims for selected PIP conditions and PIP Mobility awards.
The TaxPayers’ Alliance found that spending across those benefits has increased by £26.1 billion since 2024, while the West Midlands recorded the fastest regional growth across England and Wales, with average spending increasing by 27.3 per cent.
The total reached £133.1 billion across England and Wales in the 12 months to March 2026, a rise of 24.4 per cent in just over two years.
The group says 54 constituencies had annual welfare bills of more than £365 million, which it says is the equivalent of more than £1 million a day.
The TaxPayers’ Alliance is calling for tougher benefits caps, tighter assessments and eligibility rules, and expanded means testing, to stall the growth on welfare spending.