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UK Government Plans Major Overhaul of Long-Term Sickness Benefits

Proposed reforms aim to reduce costs, encourage employment, and revise eligibility criteria for disability payments.

  • Ministers are considering cutting sickness benefits by up to £5,000 annually for hundreds of thousands of claimants to incentivize work and curb rising welfare costs.
  • The proposed changes would introduce stricter requirements for long-term sick claimants, including obligations to seek work or engage with employment services.
  • The welfare system's costs have surged post-pandemic, with incapacity benefit recipients increasing by 1 million in five years and projected to reach 4 million by 2030.
  • Mental health and back problems, the most common reasons for claims, may face greater scrutiny under the reforms, with tougher eligibility for disability benefits like Personal Independence Payments (PIP).
  • Labour leadership anticipates internal party opposition to the overhaul, but the government argues the changes will protect the vulnerable while making the system more sustainable.
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