Significant Rise in Disability Benefits Claimants in England and Wales
The number of individuals receiving disability benefits has surged by nearly half a million over the past year, according to recent statistics. As of August, approximately 4.8 million people were claiming welfare assistance due to a disability in England and Wales. This figure reflects a noteworthy increase of 450,000 individuals from the previous year, as reported by the Government. When factoring in Scotland, where the process of devolving disability benefits is currently underway, the total claimants approach five million.
Disability benefits are welfare payments designed to assist those living with health conditions or disabilities. Importantly, these benefits are not means-tested, nor are they contingent on an individual’s employment status. The Government is currently facing challenges in reforming the system to manage the escalating costs associated with these benefits, which have reached billions of pounds.
According to the Institute for Fiscal Studies, spending on health-related benefits for working-age individuals has risen dramatically from £36 billion in 2019-20 to an estimated £48 billion in 2023-24. Projections indicate that this figure may exceed £60 billion by 2029.
Current Statistics on Disability Benefits
As per the Department for Work and Pensions (DWP), approximately 3.5 million individuals were receiving Personal Independence Payment (PIP) in 2024. This marks an increase of 400,000, or 13 percent, from August 2023 to August of the previous year. PIP provides financial support for those facing additional living costs due to long-term physical or mental health conditions or disabilities, particularly for those who struggle with daily tasks or mobility.
- An additional 1.3 million individuals were claiming Disability Living Allowance (DLA), which is available for individuals under 16 years of age. Claims for DLA increased by 51,000 from August 2023 to August of the prior year.
The latest welfare figures also indicate a rise in the number of individuals claiming out-of-work benefits without any obligation to seek employment, with 3.1 million people currently exempt from job-seeking requirements due to health issues or caregiving responsibilities.
Universal Credit and Employment Trends
As of January 2025, a total of 7.5 million people were receiving Universal Credit, an increase from 6.4 million the previous year. Among these recipients, a significant portion is either actively seeking work or already employed, with 37 percent in employment by December 2024. However, the proportion of individuals within the “no work requirements” category has now risen to 42 percent and continues to grow.
Future Reforms and Government Initiatives
Work and Pensions Secretary Liz Kendall has expressed her commitment to overhauling the health and disability benefits framework. She aims to reduce the financial burden on taxpayers while ensuring that those who can work are encouraged to do so. Plans for these reforms are expected to be unveiled in the spring, with the Government emphasizing the need for a system that supports individuals in securing employment while still providing necessary assistance to those in need.
Ministers have hinted at potential cost reductions through reforms of the Work Capability Assessment (WCA) process, as well as by limiting the number of people who can claim welfare without actively searching for work. A DWP spokesperson stated, “We have been clear that the current welfare system requires reform to ensure fairness for taxpayers while providing adequate support for individuals to transition into employment. We will soon present proposals for reforming the health and disability benefits system as part of a comprehensive strategy to assist disabled individuals in gaining employment while ensuring that necessary support remains available for those who truly need it.”
