Mental Health Claims Drive Rise in Disability Benefits
Research by the Institute for Fiscal Studies reveals that more than half of the increase in disability benefits is attributed to a rise in mental health claims. Since the COVID-19 pandemic, England and Wales have seen a nearly one million increase in working-age adults receiving disability benefits, reaching 2.9 million in 2024, with 7.5% of individuals between the ages of 16 and 64 filing claims. The IFS report attributes around 500,000 of this increase to mental or behavioral health claims, indicating that 55% of the post-pandemic rise in disability benefits is due to these conditions. Mental health or behavioral issues were the primary condition for 25% of claimants in 2002, rising to 40% by 2019, and accelerating since the pandemic to represent 44% of those receiving disability benefits in 2024, affecting 3.3% of the working-age population.
The government is expected to announce cuts to the Personal Independence Payment (PIP), the main disability benefit, arguing the current £48 billion expenditure on disability benefits, an increase from £35 billion in 2019-20, is unsustainable. PIP is not means-tested and provides financial support varying from £1,500 to £9,610 annually, depending on the individual’s level of disability, to help cover additional disability-related costs.
According to the IFS, there is compelling evidence that mental health has deteriorated post-pandemic, contributing significantly to the rise in disability benefit claims. Factors such as high mortality rates in England and Wales, with 5.5% above the 2015-2019 average in 2023, primarily due to alcohol, drugs, or suicide, underscore the increase in severe mental health conditions. The report also examines the increase in deaths due to alcohol, drugs, and suicide among working-age adults, paying attention to the interconnectedness of mental health and these outcomes.
The demand for mental health services has surged by over 36% from pre-pandemic levels, with 2 million individuals in contact with NHS mental health services in December 2024. Eduin Latimer, a research economist at IFS and author of the report, suggests that "mental health across the population has worsened," potentially contributing to the rising costs of disability benefits. Stakeholders, including Rethink Mental Illness and the Joseph Rowntree Foundation, advocate for improved access to timely mental health treatments and a comprehensive understanding of factors driving the increase in mental health problems, rather than focusing on benefit cuts as a solution.
The government acknowledges the need for welfare system reform, aiming to ensure fairness for taxpayers, support for sick and disabled individuals towards employment, and adequate support for those in need. However, the emphasis remains on preventing the economic and social implications of rising mental health issues without solely relying on reducing benefits.
