The UK’s health benefits system has been labelled as “financially unsustainable” by a Lords committee, which is urging government ministers to overhaul the system. The chairman of the bipartisan Economic Affairs Committee, Lord Bridges of Headley, has penned a letter to Work and Pensions Secretary Liz Kendall, saying “urgent action is needed to address the rising social and financial cost”.
Lord Bridges also insisted that addressing this issue “must be a top priority for the Government”. Last year, Liz Kendall stated that those who “can work, must work”, as she unveiled a plan titled “get Britain working again”, aimed at bringing some of the 2.8 million individuals sidelined from employment due to long-term illness back into the workforce.
Following an investigation into the rise in spending on incapacity and disability benefits since 2013, Lord Bridges noted in his letter to Ms Kendall that the committee found “no convincing evidence” linking the increase in health benefits to “deteriorating health or high NHS waiting lists”.
“The danger is that people have incentives to claim health-related benefits; and, once in receipt of them, have neither the incentive nor support to find and accept a job” said Lord Bridges. He urged the Government to “accelerate its plans to reform health-related benefits”.
Long-term illness has become a significant factor in unemployment since the coronavirus pandemic, with numbers rising from around two million in 2019. Lord Bridges expressed his concerns, stating: “The health benefits system is financially unsustainable, wastes human potential and in the words of the Employment Minister ‘does not work for anybody’. Given the pressure on the nation’s finances, tackling this must be a top priority for the Government.”
He also emphasised the need for immediate reform in both the unemployment and health-related benefits systems, calling for increased support to assist those capable of finding and accepting employment, while ensuring that individuals unable to work temporarily are not left reliant on benefits.
Lord Bridges warned: “Without a clear plan of action, growing welfare spending will remain a significant challenge for the forthcoming Spending Review.” In response, a Government spokesperson stated: “We are determined to get Britain working again and have set out our first steps towards delivering an 80% employment rate by joining up local work, health and skills plans. We have been clear that the current welfare system needs reform, so it is fairer on the taxpayer and people get the support they need to move into work.”
“Building on our Get Britain Working White Paper, we will bring forward proposals for reforming the health and disability benefits system in the spring. This will be part of a proper plan to help disabled people who can work secure employment while ensuring support is provided for those who need it.”