The number of health and disability claims are rising faster in Britain than many other rich countries despite having a similar amount of national income going towards the expense.
People claiming these benefits due to sickness or disability rose by more than a quarter between 2019 and 2023.
This post-lockdown surge proved to be far sharper in the UK than other nations including Denmark, Australia, Germany, France, the Netherlands, Sweden and the USA. Most of these counties have seen a downturn in benefit claims.
Analysis by the Institute for Fiscal Studies warned that with these new figures, Labour’s welfare reforms announced earlier this month may not be enough.
In the UK, the cost of these claims has also skyrocketed, showing a 50% increase since before the pandemic.
Health-related benefits also now account for 40% of the spending on working-age welfare.
These trends are also expected to continue rising, despite Liz Kendall’s and Rachel Reeves’ best efforts to reform the benefits system and balance the government’s books.
Tom Waters at the IFS told the Telegraph: “What is unusual is the recent growth: spending on these benefits increased from £37billion just before the pandemic to £56billion now.”
The expert believes the surge in claims could be the result of the cost of living crisis in the wake of lockdown, squeezing household budgets and incentivising people to claim benefits.
While he noted the recent reform announcements will make a significant dent in the welfare bill, Tom explained it will “only serve to slow the rise, rather than to put it in reverse”.
The Office for Budget Responsibility reported last week that the welfare changes announced this month could save £4.8billion by the end of the decade.
Taking this into account, it still estimates that the benefits bill could hit £72.3billion by that time.
