Rising sickness and disability claims strain Britain’s budget (opens the source in a new tab)
- WSJ says Britain has seen an unusual surge in sickness and disability claims: about seven million people now claim, many for mental-health conditions that are hard to verify.
- The yearly bill, excluding healthcare, tops £100bn and keeps rising, while Britain’s borrowing costs are the highest in the G7 and investors punish any sign of weak fiscal discipline.
- An earlier attempt to tighten eligibility was dropped after a backlash and a bond sell-off; the new Labour leadership promises reform without “crude cuts”, with a budget due later this month.
- 7m
- claim sickness or disability aid
- £100bn+
- yearly benefit bill
Why it matters It shows why bond investors watch welfare: when spending is politically hard to cut, borrowing costs rise and taxes follow, a squeeze other ageing democracies will recognise.
Other side Some of the rise may reflect genuine need and better recognition of mental-health conditions, and hard cuts could push vulnerable people into hardship rather than into work.