UK Faces Urgent Call for Disability Benefits Reform Amid Soaring Costs
A House of Lords committee warns the current system is unsustainable, urging reforms to reduce incentives for long-term claims and boost workforce reintegration.
- The UK spends £65 billion annually on health-related benefits, projected to rise to £100 billion by 2029, surpassing the defense budget.
- The House of Lords economic affairs committee highlights flaws in the system, including incentives that discourage claimants from returning to work.
- Labour is preparing a Green Paper on reforms, but the government faces criticism for delays and concerns over potential cuts pushing vulnerable individuals into poverty.
- Experts note a rise in mental health-related claims and suggest economic conditions, benefit design, and post-pandemic effects as contributing factors.
- Proposed changes include revising Work Capability Assessments and introducing support measures to help claimants transition back into employment.
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