Report

The welfare state myth

Think tank: Institute of Economic Affairs

Author(s): Stefan Fölster; Nima Sanandaji

November 19, 2025

This report from UK think tank the Institute of Economic Affairs looks at how low-tax countries offer the world’s best welfare.

New analysis by the Institute of Economic Affairs busts the myth of Nordic-model high-tax welfare superiority that has dominated political discourse for decades, and delivers a devastating verdict on Britain’s welfare performance as the tax burden and welfare budgets have ballooned.