What happened Unemployed people on sickness benefits will soon receive £2,500 more a year than a minimum wage worker, according to a think tank. An unemployed person claiming Universal Credit, housing benefit and personal independence payment for ill health would have an income of £25,000 in 2026-27, said the Centre for Social Justice. A full-time worker paid the national living wage would earn about £22,500 after income tax and National Insurance.
Who said what This "must be a wake-up call for policy makers", wrote Iain Duncan Smith, former work and pensions secretary and the founder of the think tank, in the Daily Mail. The report "isn't a swipe at claimants", he said, but a system "designed to protect those in genuine need" now appears to "dis-incentivise work" and "trap people in long-term dependency".
The think tank's calculations "show how generous" the welfare system will be after Keir Starmer failed to get £5 billion of planned cuts past his "rebellious" backbenchers, said The Telegraph. A "heavily watered-down" version of the government's benefits bill was approved by MPs last night, said the BBC.
What next? Kemi Badenoch will warn today that Britain is "sitting on a ticking time bomb" of welfare dependency. The Conservative leader will also accuse Labour and Reform UK of "turning a blind eye" to a problem that could "collapse the economy". |