More claims for disability now than after the First World War, new report into Britain's 'broken benefits system' finds

Published: 17:00 EDT, 12 October 2026 | Updated: 17:06 EDT, 12 October 2026 Disability claims have risen more quickly in recent years than in the aftermath of the First World War, according to a major new report into Britain's 'broken benefits system'.The study found that 1.8million more working-age people were classified as disabled - under a definition that includes those with mental health conditions - between 2019-20 and 2024-25.By contrast, 1.6m servicemen had by March 1923 established claims for disability after being injured on duty in the Great War.'While the measures are not directly equivalent, the comparison shows that the absolute increase recorded on the modern measure following the pandemic exceeded the recognised war-disablement total accumulated after the First World War,' the Centre for Social Justice said.The think-tank found that since 2012, the number of working-age people reporting a mental health difficulty has soared by 180 per cent.Across England, Wales and Scotland as many as 6.7m people now receive at least one out-of-work benefit.The report also identified 3,400 welfare hotspots where jobless claimants account for more than half of the local working-age population.And it warned that payments for health conditions have created a new 'benefits trap', encouraging claimants to remain on welfare rather than looking for jobs. The entrance to a consultation centre for disability benefit PIP in Birkenhead, MerseysideEmployees paid the minimum wage must work six days a week to earn as much as some benefits claimants, the think-tank found.A single, economically inactive claimant receiving Universal Credit health and housing support alongside Personal Independence Payment (PIP) can get £27,400 tax-free.By contrast a worker would need a salary of £33,000 a year to take home as much money after tax.In total some 6.2million full-time workers – about a quarter of the workforce – earn less than people on a combination of benefits.The think-tank warned that 1.3m people now receive income, health and housing support with many also entitled to other benefits including Motability cars and council tax discounts.Joe Shalam, policy director at the Centre for Social Justice, said: 'The welfare state must provide security for people who genuinely cannot work, but the Government is right to recognise perverse incentives pushing people away from employment, especially through claims for milder mental health conditions.'When someone who has chosen work over welfare has to graft for six days a week on the National Living Wage to match a combined benefit package, something has gone badly wrong.'The next generation of reform must go further to restore work incentives and give claimants the care and attention they deserve, rather than simply writing a cheque and waving goodbye.' A Government spokesman said: 'During the pandemic, there was a drive to add more people to the welfare system and near doubling of disability benefit claims between 2019 and 2024.'We are tackling these issues by narrowing the gap between Universal Credit standard and health rates, restoring face-to-face assessments, and investing £3.5 billion in employment support, while the Timms and Milburn Review will lay the foundation for sustainable reform.'We are also investing a record £16.1 billion in NHS mental health services this year to ensure every person gets the mental health support they need as early as possible.'