Benefit Reform Looms as Three Million Claim Without Work Requirements

UK Economy11 months ago327 Views

In a revealing development for Britain’s welfare system, more than three million individuals are currently claiming universal credit without any obligation to seek employment – a figure twice as high as those actively job hunting whilst receiving the benefit.

The Department for Work and Pensions’ latest data highlights a dramatic shift in benefit demographics, with the number of non-job seeking claimants doubling from 1.5 million to 3.1 million since January 2022. This surge occurs while job-seeking claimant numbers remain steady at 1.6 million.

Work and Pensions Secretary Liz Kendall emphasises the systemic failings, noting that countless individuals find themselves “shut out of work, with no support, no help and no prospects.” The government’s response includes imminent proposals to overhaul the benefits system, particularly targeting those with long-term health conditions.

The Learning and Work Institute’s research reveals 3.5 million people are exempt from job searching due to ill health – a million person increase since the pandemic. Their chief executive, Stephen Evans, points to concerning statistics showing only 1% of long-term sick claimants secure employment within six months, compared to 33% of active job seekers.

The financial implications are substantial, with disability and incapacity benefit spending projected to rise by £18 billion to £70 billion over the next five years. This trajectory has prompted ministerial action, with proposals to remove the highest category of universal credit health claims – a designation currently providing an additional £5,000 annually without work-seeking requirements.

The Office for National Statistics reinforces these concerns, reporting long-term sickness figures hovering near record levels at 2.8 million, while total economic inactivity stands at 9.3 million – approximately 800,000 higher than pre-pandemic levels. These figures underscore the urgent need for systematic reform in Britain’s welfare structure.

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