DWP to make change to PIP, DLA, Attendance Allowance that UK 'is crying out for'

The number of working-age people who claim health-related benefits has risen by 38 per cent in four years, a report by the Institute for Fiscal Studies (IFS) has found.

Health-related benefits offered by the Department for Work and Pensions ( DWP ) could have to change due to a "fiscal headache" for the new Labour Party government. The number of working-age people who claim health-related benefits has risen by 38 per cent in four years, a report by the Institute for Fiscal Studies (IFS) has found.

The number now risen to 3.9 million in 2023/24. Benefits include the likes of Personal Independence Payment (PIP), Attendance Allowance, and Disability Living Allowance (DLA), as well as Employment and Support Allowance (ESA).

IFS research economist Eduin Latimer said: “The recent rise in health-related benefit claims is creating a fiscal headache for the Government and, of course, is a bad sign about population health. Two simple candidate explanations, that this is just driven by the pandemic or the cost-of-living crisis, are hard to square with the lack of similar trends elsewhere.

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“It seems likely that these shocks have played a role, but it may be that they have an outsized effect in the UK, perhaps because of difficulties in accessing NHS treatments, or the relatively low level of basic unemployment support in the UK. The crucial point is that it is not yet known what factors are driving this increase.

“Figuring out what is behind the recent rise must surely be a top priority for the Government if it is going to be able to respond appropriately.” Sharlene McGee, policy manager at The Health Foundation, said: “The UK’s health is fraying and health inequalities are widening.

“This worrying increase in people claiming disability-related benefits is yet another sign that many people are experiencing poor health and disability, with greater rises in areas of higher deprivation. Disability and health-related benefits look set to be a key policy focus this parliament, as the stark consequences of failing to maintain the health of the working-age population become more apparent.

“A clearer understanding of these trends and what is driving them is urgently needed. Government policy direction must prioritise supporting health and creating opportunity for people, and not become a short-term cost-cutting exercise.”

Iain Porter, senior policy adviser at the JRF, said: “This research shows there is still lots we don’t know about why so many people are claiming ill-health benefits. The Government should look into this important issue in depth to get to the root cause of this problem. A warning light the Government cannot ignore is how inadequate our social security system is. People claiming universal credit can’t afford the most basic essentials like food or clothing.

“Anything else other than getting through each day is an afterthought. The independent investigation into health and care services by Lord Darzi and the Prime Minister have both acknowledged that long waiting lists and delays in treatment, as well as a failure to prevent ill health, mean too many people are unable to work.”

A Government spokesperson said: “This is another example of the dire inheritance this Government faces – too many people are trapped on benefits and are being denied the opportunities they deserve due to ill health. We will deliver the change the country is crying out for by creating more jobs, making work pay, and transforming skills, while reforming jobcentres and giving local areas the power they need to tackle economic inactivity.

“Cutting NHS waiting lists and addressing the social determinants of health is also key to getting Britain well and back to work.”