Work and Pensions Secretary Pat McFadden has expressed concern over the rising number of young people being directed toward long-term sickness benefits, warning that the current system risks writing off their future employment prospects. Speaking from his office, McFadden highlighted that the transition onto long-term health-related benefits often results in claimants remaining out of work for extended periods, sometimes lasting decades.
The issue was underscored during a recent visit to a job centre in Bellshill, near Glasgow, where McFadden observed that nearly 25 percent of local men were on out-of-work benefits despite numerous job vacancies. A significant factor, he said, is that 40 percent of these claimants were on a “health journey” — a pathway effectively preparing them for long-term sickness registration rather than employment.
Currently, a record 6.7 million people in the UK receive out-of-work benefits, a level comparable to recession figures. Among them, the situation for young claimants is particularly troubling. Approximately seven in ten young adults who start claiming sickness or disability benefits continue to receive them ten years later. McFadden noted that around one million people aged under 35 are neither employed, in education, nor training, with more than half depending on welfare support—a number increasing rapidly.
The secretary stressed that early placement onto long-term benefits often leads to persistent economic inactivity. For example, around 42,000 teenagers claim sickness benefits, a figure that has doubled since lockdown measures were introduced. Across all under-35s, nearly one million receive these benefits. Contrary to common assumptions that long-term sickness benefits predominantly affect older workers nearing retirement, McFadden pointed out research indicating younger individuals are less likely to exit these benefits and find steady employment compared to older claimants.
McFadden draws a parallel with his earlier work on the New Deal for Young People during the Tony Blair administration, noting a shift in the labor market environment where the growth of health-related claims has emerged as a significant challenge. Last year, he commissioned a report led by former health secretary Alan Milburn to analyze the long-term effects of welfare dependency among young people and the rising number of those designated as “Not in Employment, Education or Training” (NEET). The report indicated that around 1,000 young people are signed off sick daily, many unlikely to reenter the workforce.
The problem, McFadden highlighted, often begins in childhood. He pointed to rising claims for Disability Living Allowance (DLA) among children—a benefit providing roughly £6,200 annually per child and additional support to parents recognized as carers. While about one in 32 children were on DLA twenty years ago, current figures show close to one in nine children receiving the allowance by age 15. Upon turning 16, most transition onto Personal Independence Payment (PIP), where economic inactivity rates remain high. The long-term financial impact is significant, with PIP claims having surged from 2.4 million at the start of the decade to 4.1 million today, and projected to rise to 5.4 million by 2030. The associated cost is expected to nearly double, reaching £41 billion—more than twice the budget of the British Army.
Efforts to reform PIP are underway, with McFadden noting his deputy Stephen Timms is reviewing the changing profile of claimants. However, while some political parties have proposed drastic benefit cuts, McFadden cautions against approaches that would disproportionately affect older disabled populations. Instead, he suggests Labour’s potential reforms are more likely to focus on younger claimants, many of whom claim benefits for conditions such as autism and ADHD.
When asked about Labour leader Andy Burnham’s position, McFadden said Burnham recognizes the social implications of the current system and seeks reforms prioritizing opportunity and equality rather than merely fiscal savings. According to McFadden, Burnham supports changes that deliver a “better deal” for young people, emphasizing reforms grounded in improving outcomes rather than cost-cutting alone.