Britain’s benefits system faces increasing pressure as the number of people claiming support continues to grow and costs keep rising. Recent data shows more people are seeking help especially those who cannot work because of health problems.
The Department for Work and Pensions reported that Universal Credit claimants went up by 63000 in just one month.
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The February numbers show a total of 8.40 million people compared to 8.34 million in January. Out of the new claimants around 25,087 individuals were added to the system without needing to look for work. Most of them have been judged too sick to work while others are looking after children.
These numbers appeared before the government removed the two-child benefit cap which means even more people might claim benefits in coming months. Chancellor Rachel Reeves announced in November’s Budget that the cap would end this month after Labour MPs pushed for the change.
The latest figures also coincide with Universal Credit payment increases for millions of people across Britain. New rates for the 2026/27 financial year started on April 6. The rise is higher than inflation and is part of broader changes to the benefits system from the Department for Work and Pensions. Single claimants who are 25 or older now get £424.90 each month instead of £400.14 which equals roughly £5,098 per year.
This group represents the biggest portion of Universal Credit recipients so the changes impact many people. By 2030 those in this category should receive an extra £760 annually compared to 2024 amounts. While standard payments are going up the health portion of Universal Credit is being cut for new claimants under recent reforms. The increasing number of people on welfare is also linked to more disability claims.
Payments for anxiety alone now cost taxpayers about £800 every minute. Spending on Personal Independence Payment for anxiety jumped from less than £100 million in 2019 to nearly £427 million in the past year. In the twelve months ending in January 66,818 people in England and Wales claimed PIP with anxiety as their primary condition and received an average of £122.77 weekly. Mental health issues have caused much of the rise in disability benefit claims since the Covid pandemic.
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They now make up over 40 percent of all PIP applications. The Institute for Fiscal Studies found that psychiatric disorders were responsible for 55 percent of the increase in disability payments. The benefit can be awarded without any medical examination. People can receive up to £194 weekly based only on a personal diary or a letter from someone they know describing how their condition affects daily activities.
PIP is not based on income so a company director earning six figures qualifies just like anyone else. People who receive it do not have to quit their jobs. The assessment system gives points across twelve categories that cover daily living and mobility tasks. Getting just eight points out of a possible 72 triggers the standard daily living rate of £73.90 per week. Additional mobility payments could add another £77.05.
Reform Treasury spokesman Robert Jenrick called the spending on mild mental health conditions absurd. He said it is offensive to hardworking people that so much of their tax money is being wasted. He added that the growing benefits bill now threatens to bankrupt the country.
Shadow work & pensions secretary Helen Whately said millions are getting benefits for anxiety and ADHD along with a free Motability car. She stated that the bill is too high and the system is broken. A DWP spokesman defended the government’s approach.
He said they recognize that the welfare system they inherited needs reform which is exactly what they are doing. He explained that recent changes to Universal Credit reduce the gap between payments for people on health-related benefits & those actively looking for work. This is expected to save nearly £1 billion for taxpayers and remove incentives that encourage sickness claims.
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