Just 900 on Top Sickness Benefits Seek Work Support Amid Concerns Over Welfare Reform

Recent government figures reveal just 900 individuals receiving the highest level of incapacity benefits joined a voluntary employment coaching scheme last month, prompting renewed debate over welfare reform and employment support for those out of work due to ill health.

Since 2022, only 14,000 people within the Limited Capability for Work or Work Related Activity group—who receive the maximum universal credit for incapacity and face no requirement to seek employment—have opted into the initiative. This equates to a very small proportion, given there are 1.93 million people in this category. Ministers have set out to curb the rising number deemed unfit for work, investing £1 billion annually in employment support measures. Yet the stark figures raise questions about the current strategy’s effectiveness in altering claimant behaviour or reducing welfare dependency.

Nearly half of those receiving universal credit, the UK’s main working age benefit, are no longer required to look for work as ever more individuals are signed off sick. Sir Mel Stride, the shadow chancellor, obtained the figures via parliamentary questions and argued the current Labour government is undermining progress, saying the recent welfare policy U-turn will trap hundreds of thousands more on benefits without work obligations. Previous Conservative reforms, intended to toughen eligibility and encourage employment among those with physical or mental health conditions, have been scrapped.

Disability Minister Sir Stephen Timms highlighted forthcoming changes intended to increase engagement among LCWRA claimants. All those in the group will soon be asked to engage, at least annually, with employment advisers as part of new pilot schemes. An extra thousand advisers will be recruited to deliver a stepped-up employment support programme, designed to better understand and address individual claimant circumstances.

Analysis from Stephen Evans, chief executive of the Learning and Work Institute, points to untapped potential among those out of work due to ill health, many of whom express willingness to consider work if offered appropriate support. However, historic scepticism towards the Jobcentre remains a barrier, with claimants worried about being pushed into unsuitable roles. Comprehensive and empathetic support from work coaches has been shown to increase job outcomes and improve mental health for some; nonetheless, only 11 per cent of those receiving work coaching found employment within a year.

If extended to all current LCWRA claimants, the scheme could result in an estimated 57,000 additional people in employment, a modest impact given the scale of the challenge. Broader collaboration between health services, local authorities and employers is seen as essential for genuinely inclusive labour market recovery.