Public Finance in Great Britain

1. Central government raises money from individuals and companies through direct and indirect taxation. It spends money on goods and services, such as health and defense, and as payments to people, for instance, social security.

2. The social security program provides financial help for people who are elderly, sick unemployed or on very low incomes. It accounts for nearly a third of all public expenditure.

3. The system includes contributory benefits in case of sickness, invalidity, unemployment, widowhood and retirement. A state retirement pension is payable to women at age of 60 and men at age of 65.

4. There are other income benefits. Family credit, for example, is for families on modest incomes. Income support is for people without work and with low financial resources. Some benefits are available to a broad hand of low income households. They help to pay local government taxes too.

5. The main sources of revenue are personal income tax, corporation tax, petroleum revenue tax, inheritance tax, valued added tax (VAT), and customs and excise duties. Other sources include National Insurance contributions, vehicle excise duty and local taxes on people and businesses.

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What do you know about income benefits and income support in Great Britain?