According to estimates, the Labour government has spent a total of £171 billion on tax credits between 2003 and 2010.

The figure of £171 billion represents a 60 per cent rise in the welfare expenditure in the country. During the two years before 2010, the total spending on welfare increased by about 20 per cent. Data also showed that tax credit payments increased by about 58 per cent ahead of the 2005 general elections.

It was pointed out that more than £10 billion was wasted due to fraud and error during the years. The government had increased the income disregard in tax credits to £25,000 during 2008 but many believe that the system was open to abuse. The increase allowed claimant to increase their earnings by an additional £25,000, which is a high increase for any individual.

Experts say that the system was not fit for hard-working taxpayers and needs reforms to reward deserving beneficiaries. The welfare spending had risen even before the recession hit the global economy. The welfare bill was costing an additional £3,000 a year by 2012 in the UK. The amount is too much for the UK's hard-working majority.