One million more Britons have been signed off work indefinitely since Labour swept to power last year, with nearly half of Universal Credit claimants now told they never have to look for a job.
Official figures from the Department for Work and Pensions show 3.7 million people are now claiming Universal Credit with “no work requirements,” up from 2.67 million when Keir Starmer won the general election in July 2024.
It means the number of people effectively “parked” on benefits has rocketed by more than a third in just a year. By contrast, the number of claimants actively required to job-hunt has also slipped to just 1.6 million.
The surge is being driven by a sharp rise in sickness and disability claims, with older workers leading the jump. Those aged 55–59 on Universal Credit without work rules soared 64% to 426,000, while 45–49-year-olds climbed 58% to 404,000. Even the 20–24 bracket saw a 9% rise.
Economists say the trend is partly fuelled by the rising state pension age, forcing older workers onto working-age benefits, many of whom are too ill to work. The number of people classed as “economically inactive” due to ill health has ballooned from 2.1 million before Covid to 2.8 million today.
Labour’s plans to overhaul welfare have already hit trouble after a backbench revolt forced ministers to water down proposals to freeze incapacity benefit payments.
Critics warn the bill for health and disability benefits is on track to hit £100bn a year by the end of the decade, with many claimants receiving up to £5,000 extra annually in sickness top-ups.
Joe Shalam, of the Centre for Social Justice, blasted: “This problem can’t be shoved in the ‘too difficult’ box. If we don’t fix it, we risk writing off another generation.”
The DWP said some of the rise was down to moving people from old-style benefits, but admitted that was not the main driver.
Worth reading in full: https://www.telegraph.co.uk/business/2025/08/12/one-million-britons-off-work-life-labour-took-power/
