UK disability benefits outpace wages, sparking reform debate

In England and Wales more than four million people now claim the main disability benefit, with 87,000 16‑ and 17‑year‑olds receiving Personal Independence Payment (PIP). A Times analysis shows a teenager on the minimum‑wage can earn about £94 a week, while a peer signed off for anxiety receives over double that amount.

The Centre for Social Justice warns that since the COVID‑19 pandemic roughly 1,000 people a day have been added to disability benefits, chiefly for mental‑health conditions. Their research suggests millions of workers could earn more from benefits than from post‑tax wages, costing taxpayers billions. Sir Iain Duncan Smith, CSJ founder, called the situation “an outrageous state of affairs” and announced a Welfare 2030 enquiry to redesign the system.

A government review led by disability minister Sir Stephen Timms will report in the autumn, with Prime Minister Andy Burnham signalling a tougher approach to claims, saying the UK must “get really serious” about curbing the welfare bill.