The benefits system is failing to provide meaningful support for people with mental health conditions who want to work, according to new research from the Department for Work and Pensions (DWP).
The findings suggest that many people on health and disability benefits feel trapped by a system that does not accommodate their needs, preventing them from gaining employment and improving their living standards.
200,000 Ready to Work — If Support Available
The survey, titled Work Aspirations of Health and Disability Claimants, reveals that a third (32%) of those receiving health and disability benefits believe they could work now or in the future, while 5% — equating to around 200,000 people — say they would be ready immediately if the right job or support were available.
The survey also showed that work is seen as an essential part of identity and wellbeing for many people. But 50% of claimants not currently in employment expressed concerns that they would be unable to regain their benefits if they attempted paid work and it didn’t work out — a major deterrent for those eager to re-enter the workforce.
Soaring Numbers of Young People Out of Work
The number of young people aged 16 to 34 who are economically inactive due to long-term sickness and a mental health condition has surged to 270,000 — an increase of 26% in the past year alone, the DWP says.
Among all working-age individuals (16 to 64), the number has risen to 790,000, a 22% rise in the last year. It reflects a growing crisis in employment accessibility for those with mental health challenges.
Government Pledges Overhaul of Benefits System
In response to the report, Work and Pensions Secretary Liz Kendall acknowledged the failures of the current system and pledged significant reforms.
“Today’s report shows that the broken benefits system is letting down people with mental health conditions who want to work,” Kendall said. “People claiming health and disability benefits have been classed by the system as ‘can’t work’ and shut out of jobs and have been ignored – when they’ve been crying out for support. That is a serious failure. It’s bad for people, bad for businesses, which miss out on considerable talent, and bad for the economy.”
Kendall warned of the long-term consequences of economic inactivity for younger generations. “For young people in particular, being out of work can have a scarring effect that lasts a lifetime.”
Major Reforms Expected in Spring
The government is set to unveil a Green Paper in the spring outlining significant changes to the welfare system. The reforms will aim to create a fairer, more supportive structure that helps people with long-term health conditions, including mental health challenges, access work opportunities while maintaining financial security.
The proposed changes are expected to build on the Get Britain Working White Paper, which set a target of reaching an 80% employment rate. As part of this strategy, the government has increased funding for employment support through the NHS Talking Therapies programme, which provides mental health treatment alongside job-seeking assistance.
Other commitments include hiring 8,500 additional mental health professionals, establishing mental health support teams in every school and creating open-access mental health centres in communities nationwide.
Addressing the UK’s Rising Inactivity Rate
The UK remains the only G7 country with higher economic inactivity rates than before the pandemic, with rising numbers of people claiming incapacity benefits for mental health conditions.
The government has cited this trend as a key driver behind the spiralling benefits bill, which it aims to address through upcoming reforms.
With mounting pressure to address the employment gap for those with long-term health conditions, all eyes will be on the government’s forthcoming Green Paper to determine whether it delivers the systemic change that many say is long overdue.
