Millions on Sickness Benefits May Be Ineligible, Government Admits

An estimated two million individuals receiving sickness benefits may not be eligible for the payments, according to recent government admissions. More than two-thirds of these claimants are overdue for reassessment, with the average wait time for this review stretching to two years. Work and Pensions Secretary Pat McFadden acknowledged that the current system allows individuals to "disappear into the welfare system" and continue receiving taxpayer funds without adequate oversight. One case highlighted involved an individual receiving payments for 16 years without any health checks.

These revelations come as ministers face mounting pressure to reform the welfare system and reduce overall spending. McFadden indicated that the system makes it too easy for individuals to be "signed off and written off," suggesting that once a decision is made about fitness for work, there is often no further follow-up.

Ministers are reportedly developing welfare reforms that could include significant changes to how the health element of Universal Credit is managed, particularly for individuals under 25. For those with less severe conditions, the proposal is to shift from monthly cash payments to intensive employment support, including subsidized jobs and mental health assistance.

Further reforms may target the Personal Independence Payment (PIP) system, which has seen a substantial increase in claimants. Data from the Department for Work and Pensions (DWP) shows that as of July 31, 2026, 4.09 million people were entitled to PIP, an increase of 7% from the previous year. The number of PIP claimants has roughly doubled since January 2019. The majority of claimants, 83%, are of working age, with those aged 50 and over comprising the largest demographic group.

Past attempts to reform disability benefits have faced opposition from within the ruling party, as seen last year when planned cuts were abandoned. A government-commissioned review led by social security minister Sir Stephen Timms concluded in its interim findings that the current benefits system, originally designed in 2013, is "no longer fit for purpose" and requires "fundamental change" to ensure financial sustainability. The final report is expected to offer recommendations on how to address the rising costs of the system, with the possibility of changes to the number of people claiming benefits.

A DWP spokesperson stated that the government recognizes the need to reform the work capability assessment process, which has experienced a surge in demand. The department has prioritized increasing face-to-face assessments, which have nearly doubled in the past two years, with a focus on new claimants and those reporting changes in their circumstances.