The UK Government is spending nearly £65 billion on incapacity and disability benefits, which is more than the Ministry of Defence’s £56.9 billion budget.
Labour leader Keir Starmer is facing pressure to cut this “unsustainable” spending on health-related benefits. Critics argue that the system needs urgent reform, with stricter assessments, including face-to-face evaluations, to determine what work claimants can do rather than focusing on their limitations.
A report from the House of Lords Economic Affairs Committee revealed that 3.7 million working-age people receive health-related benefits, an increase of 1.2 million since February 2020. The committee suggested the Government could save £10 billion by bringing 400,000 people receiving sickness benefits back into the workforce.
Lord Bridges of Headley, the committee chair, called the current system “unsustainable” and said reform should be a top priority, urging the Government to offer more support to help people return to work where possible.
The committee also recommended assigning work coaches to help incapacity benefit claimants for their first two years, aiming to address health and employment barriers.
The Government has also announced plans to tackle benefit fraud. The Department for Work and Pensions (DWP) will introduce measures to recover money from fraudsters directly from their bank accounts as a last resort.
Work and Pensions Secretary Liz Kendall stated that these powers will ensure accountability for those cheating the system and protect public funds.
Kendall emphasized the Government’s commitment to reducing waste and fraud in the welfare system, reassuring taxpayers that their money will be safeguarded while modernizing the system.
