The UK is grappling with an alarming escalation in long-term sickness claims costing the government over £65.7 billion annually. Currently, around 2.8 million individuals receive incapacity or disability benefits, a figure considerably higher than pre-pandemic levels. A recent House of Lords committee stated that this surge is not solely due to worsening health or NHS delays. Instead, they identified potential structural issues within the benefits system that incentivize individuals to report health problems to exit the workforce, despite overall health trends remaining stable over the past decade.
The House of Lords committee has warned that the significant rise in incapacity and disability claims cannot be solely attributed to health deterioration or NHS delays.
The Lords committee concluded that other government data indicate overall health has remained stable, suggesting deeper structural issues within the benefits system.
With £65.7 billion spent annually on sickness support, policymakers are faced with a significant challenge regarding the increasing number of claimants.
Experts emphasize that an incentive structure in the benefits system may be encouraging more people to report health issues to leave the workforce.
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