Poor mental health prevents 20,000 people from working

DWP’s welfare reforms aim to cut the number of people on the highest tier of incapacity benefits and instead offer personalised support to “improve lives and grow the economy”

Almost two thirds (or 20,000 each month) of incapacity benefit claims are for mental health problems, reveals new data from the Department of Work and Pensions (DWP).

Mental health and learning disabilities make up most disability claims, which are paid regardless of whether someone can work. Until recently, there was a lack of data relating to incapacity benefits paid via Universal Credit for people struggling to work, but DWP figures suggest two million people receive Universal Credit health benefits and 1.4 million are judged unfit for any work.

Between January 2022 and November 2023, 69% of those assessed via a Work Capability Assessment had mental and behavioural disorders, although this was not always their primary medical condition. Claimants often have complex health conditions and figures show that, on average, each has 2.7 conditions.

Nil Güzelgün, Head of Policy and Campaigns at Mind said the data “highlights the acute need for mental health support.” Mind says DWP figures suggest 69% of people with mental health problems, learning disabilities and dementia require extra financial support, while 55% of people with mental health problems have been told they are well enough to be looking for work.

“We know people would love to work if they had access to the mental health support they need, but that support just isn’t there,” Güzelgün added. “The suggestion that benefits for disabled people and people experiencing long-term health conditions should be reduced – as the cost-of-living crisis continues – is alarming. People need to be offered tailored support from experts if they are to return to work, not threats of losing what little money they currently have to live on.”

“Ill-health is driving the rising number of people on out-of-work benefits, and damaging the economy, so it’s crucial to understand the health challenges faced by people claiming Universal Credit.”

Christopher Rocks, Lead Economist for the Health Foundation agrees that “a tailored approach will be key to helping people back into work.” He added: “Ill health is driving the rising number of people on out-of-work benefits, and damaging the economy, so it’s crucial to understand the health challenges faced by people claiming Universal Credit. The new DWP data is a step in the right direction.”

Professor Karina Nielsen, Professor of Work Psychology at the University of Sheffield said, “It’s important to tailor the intervention to the needs of the individual and to make reasonable adjustments. It’s also important to acknowledge that mental health problems fluctuate and therefore work adjustments and support to workers with mental health problems need monitoring such that ongoing adjustments can be made.”

A DWP spokesperson said: “We are taking the long-term decisions to help everyone who can work to do so, improving lives and growing the economy. Our landmark welfare reforms will cut the number of people due to be put onto the highest tier of incapacity benefits by over 370,000 and instead give them personalised support, while our Chance to Work Guarantee will enable people to try work without fear of losing their benefits.”

The DWP’s £2.5 billion Back to Work Plan aims to help over a million people, including those with disabilities and long-term health conditions. Additionally, £2.3 billion will be invested annually until 2024 to expand mental health services, increase the mental health workforce to help cut waiting lists, and increase the number of GPs to improve patient access.

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