Liz Kendall, the Work and Pensions Secretary, has said that “too many people have been shut out of employment” as the government moves ahead with welfare reform plans.
According to the latest statistics released by the Department for Work and Pensions, the number of people who claim Universal Credit without having to work has more than doubled over the past three years.
Provisional figures indicate that there were 7.5 millions people receiving Universal Credit in January of 2025. This is the highest number since the launch of the flagship benefit, in 2013. This figure was 5.5 millions in March 2022.
In January 2025 the number of people claiming benefits without having to work increased by around a half compared to January 2022.
A person who is not required to work has been assessed by a professional as having limited capacity for work or work-related activities. It includes people with health problems or care responsibilities which prevent them from working, those in full-time schooling, or anyone over the state pension age.
The DWP reported that this category has grown since April 2022, when it overtook those claimants who were ‘looking for work’. In December 2024, just over a third of claimants (37%) were employed.
Kendall stated: “Many disabled and sick people have told us that they would like to work if given the proper support. For too long, they have been denied the chance to find a job. Our economy suffers because businesses miss out on talent that is untapped.
The DWP attributed a portion of the increase in those claiming Universal Credit without working to the changes made in the welfare system, which saw people move from legacy benefits to Universal Credit.
The government released its Get Britain working paper in November. It outlined ambitious plans for achieving 80% employment. The paper proposes reforms of the current support system aimed at tackling root causes such as inactivity and health problems.
Kendall told ITV in a recent interview that some claimants are “taking it to the nth degree” but many want to return to their jobs if they improve or if more help is provided to find suitable employment.
Some have suggested that the government removes the highest category for universal credit health benefits, which could give claimants an extra PS5,000 a year without them having to find work. MPs say that this would eliminate the financial and practical incentive of being declared sick.
Kendall stated that proposals for benefit reform will be revealed “within a few weeks”.
In its Plan for Change, announced shortly after the elections, the government launched a new ‘jobs-on-wheels’ service to increase access to employment.
Mobile Jobcentre vans are visiting areas where unemployment is particularly high and there is economic inactivity. They offer support to people with their job search, training opportunities and information about help with childcare costs.
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