The number of working-age people in the UK claiming out-of-work benefits has reached an unprecedented 6.5 million, with half a million additional claimants recorded since Labour entered office last year.
Official data from the Department for Work and Pensions (DWP) confirms that this figure represents the highest on record, surpassing the previous peak seen during the height of the Covid-19 pandemic in early 2021, when the total stood at 5.9 million.
The rise comes despite Prime Minister Keir Starmer’s election pledge to “get Britain working” and to raise the UK’s employment rate to the top of the G7. Critics have pointed to the increase as a contradiction of those promises.
Those counted as receiving out-of-work benefits include claimants of Universal Credit, incapacity support, and unemployment assistance. The latest figures show that 15% of Britain’s working-age population are now reliant on these payments, a significant jump from 9% ten years ago.
Andrew Griffith, the Shadow Business Secretary, commented: “This shows Britain has a worklessness crisis which Labour seems determined to make even worse with more tax rises and additional employment red tape. Rather than watch it spiral out of control, Labour need to U-turn now.”
“This shows Britain has a worklessness crisis which Labour seems determined to make even worse with more tax rises and additional employment red tape. Rather than watch it spiral out of control, Labour need to U-turn now.”
The owner of a design and IT consultancy told The Post.
“Everything Starmer promised has turned out to be the exact opposite of the truth. Labour is wrecking the economy at speed. They’re trapped in a doom loop and somehow think more taxes and extra red tape for employers will fix it. When will they realise it’s doing the opposite? I’ve had enough. I’m closing down my business and moving to Spain. Two of my former employees I had to let go have already signed on. That’s the result: Labour drives out businesses like mine, loses the tax revenue, and ends up creating more unemployment.”
The growth in claims has coincided with political pressure within Labour ranks. Earlier this year, Chancellor Rachel Reeves was compelled to abandon several proposed welfare reforms following internal party opposition. The situation has raised concerns about the government’s handling of welfare and employment policies.
The overall increase in jobless benefits also includes a significant rise in claims from younger individuals. Since the start of 2020, the number of under-25s receiving sickness-related benefits has grown by 52%, reaching a record 235,000. Much of this rise is understood to be linked to mental health conditions.
Although these benefits can be accessed by people still in employment, experts have warned that too often, individuals become detached from the workforce after seeking medical certification.
Sir Charlie Mayfield, the former head of John Lewis and leader of a government review into economic inactivity, warned in an interview with The Telegraph that “fit notes were acting like ‘a force field,’ creating a barrier between employers and their staff.”
Further analysis published earlier this month by The Telegraph suggests that more than 1 million working-age adults are currently receiving benefits that do not require them to actively look for employment. In contrast, the number of people expected to seek work as a condition of their benefit support has decreased, from 1.65 million in July 2024, when Labour came to power, to 1.6 million in the most recent count.
The updated figures were released quietly by the DWP and have since drawn public and political scrutiny. Regional breakdowns highlight stark differences across the country. In Blackpool, 27% of working-age adults are receiving out-of-work benefits. The rates are also high in Birmingham (25%), Liverpool (23%), and Glasgow (22%), based on data analysed by Fraser Nelson in a recent Substack post.
Although claims had been falling steadily following the pandemic under the Conservative government, the total number has risen by nearly 9% since Labour formed government in the summer of 2024.
Some critics argue that the current trend is unsustainable and undermines the UK’s economic recovery. Others have raised concerns about the cost to the taxpayer and the long-term impact of welfare dependency.
Worth reading in full here: https://www.telegraph.co.uk/business/2025/08/26/record-65m-britons-on-jobless-benefits/
