Report Shows 38 Percent Increase in Health Benefits Claims Since Pandemic
Two notable trends identified by the Institute for Fiscal Studies were that claimants were getting younger and there is an increase in claims for mental health conditions.
Health-related benefits claims among working-age people have risen by 38 percent since the COVID-19 pandemic, as reported by the Institute for Fiscal Studies (IFS).
This equates to a real-term increase in health-related benefits from £36 billion to £48 billion, representing a one-third increase. Official forecasts indicate that this spending is expected to rise further to £63 billion in 2028/2029.
Claims for health-related benefits have increased in every local authority except for the City of London, with the fastest growth occurring in areas with high pre-lockdown claim rates.
Notably, there has been a significant rise in claims made by younger individuals and for mental health conditions.
For instance, new disability benefits awards made to those under 40 have increased by 150 percent, while the growth for 40 to 64-year-olds has been 82 percent.
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Research shows that while young people are more likely to claim benefits for mental health conditions, there has been a significant increase in claims across all age groups, with new claimants more likely to claim due to mental health reasons.
Christopher Rocks, the lead economist at the Health Foundation think tank, stated that the rising number of people on out-of-work benefits due to ill health is impacting the economy.
The report funded by the Health Foundation and Joseph Rowntree Foundation compares the number of claimants pre-and-post-pandemic in the UK with other countries, highlighting that the rapid growth in health-related benefits appears to be unique to the UK.
While other countries experienced slight decreases or small percentage increases in claims, the UK saw a significant rise. The report emphasizes that understanding the factors driving this increase is crucial for the government to respond appropriately.
This report coincides with the new Labour government’s commitment to addressing economic inactivity due to illness, with Work and Pensions Secretary Liz Kendall calling it the “greatest employment challenge for a generation.”
In response to the IFS’s findings, a government spokesperson stated plans to create more jobs, make work pay, transform skills, and tackle economic inactivity through various reforms.
PA Media contributed to this report.
