1.8 Million Universal Credit Recipients Receive No Employment Support
The number of people on Universal Credit deemed unfit for work has surged to 1.8 million, a near fourfold increase since the pandemic. New figures highlight significant concerns over the Work Capability Assessment (WCA), which critics say pushes individuals out of the workforce and into long-term inactivity.
Alarming Growth in Limited Capability for Work Cases
Government data released on 13 March reveals that the number of individuals categorised as having Limited Capability for Work-Related Activity (LCWRA) has risen from 360,000 pre-pandemic to 1.8 million—a 383% increase. In the past year alone, this figure has grown from 1.4 million to 1.8 million, demonstrating a rapid escalation in the number of people receiving Universal Credit without employment support.
Young people are among the hardest hit, with the number of 16-to-24-year-olds in the LCWRA category rising by 249% since the pandemic from 46,000 to 160,000. This trend contributes to the growing issue of youth economic inactivity, as nearly one million young people are currently not engaged in education, employment, or training.
Government’s Plan to Reform Welfare and Boost Employment
In response, the government has introduced various initiatives under its “Plan to Get Britain Working.” This strategy aims to empower local mayors to address economic inactivity, reform Jobcentres, and introduce a Youth Guarantee to ensure all young people are either working or learning.
Building on broader employment reforms, Work and Pensions Secretary Liz Kendall is expected to announce sweeping welfare changes. These reforms seek to create a more inclusive labour market while addressing the rising cost of welfare.
Government Calls for a Fairer Welfare System
Liz Kendall MP stated: “Millions have been locked out of work due to a broken welfare system. At least 200,000 people want to work but lack the necessary support. We are committed to fixing this flawed system so that it truly helps people while making the welfare budget more sustainable.”
Currently, the WCA categorises individuals as either “fit for work” or “not fit for work,” with little flexibility for those who may be capable of employment with appropriate support. The government has acknowledged the need for reform, exploring ways to replace the assessment so that it no longer forces individuals into long-term benefit dependence.
Under the existing system, those classified as LCWRA do not receive job-seeking support after their assessment, effectively leaving them without opportunities for reintegration into the workforce.
Concerns Over Financial Incentives for Inactivity
At present, Universal Credit recipients over the age of 25 receive £393.45 per month, with those on LCWRA entitled to an additional £416.19. Critics argue that this structure unintentionally discourages claimants from seeking employment, as many feel compelled to remain in the LCWRA category to access financial stability.
Over the past five years, 67% of Universal Credit claimants assessed under the WCA have been classified as LCWRA. This trend suggests that the system may incentivise individuals to present themselves as unable to work to secure higher benefits.
Investment in Healthcare and Employment Support
To address the root causes of health-related economic inactivity, the government is investing £26 billion into the NHS. This funding will support an additional two million medical appointments and the hiring of 8,500 new mental health professionals, ensuring people receive the necessary treatment to remain healthy and work-ready.
Additionally, a £250 million initiative is in place to reintegrate individuals into employment. As part of this effort, 1,000 Work Coaches will be redeployed to provide intensive support to approximately 65,000 sick and disabled jobseekers, marking the first step towards a more balanced and equitable welfare system.
