Work and pensions secretary Liz Kendall has claimed that ‘too many people are shut out of work’ as the government pushes ahead with plans for welfare reform.
The latest statistics from the Department for Work and Pensions show that the number of people claiming Universal Credit with no requirement to work has doubled in three years.
There were 7.5 million people on Universal Credit in January 2025, provisional figures show, the highest level since the introduction of the flagship benefit in 2013. In March 2022, this figure was 5.5 million.
The number claiming the benefit with no requirement to work was 3.1 million in January 2025, around double the figure in January 2022 and making up 42% of claimants.
Welfare reform
No requirement to work means that someone has been assessed as having limited capability for work and work-related activity. This includes having health or caring responsibilities that prevent someone working; people in full-time education; those over state pension age or someone with a child under the age of one.
This category overtook the number of claimants reported as ‘searching for work’ in April 2022 and has been growing ever since, the DWP said. Just over a third (37%) of claimants were in employment in December 2024.
Kendall said: “Many sick and disabled people tell us they want to work with the right support. But for too long they’ve been denied a fair chance to get jobs. Potential is being wasted, businesses are missing out on untapped talent, and our economy is suffering.”
The DWP attributed some of the increase in people claiming the benefit without work to changes in the welfare system meaning people moved from legacy benefits onto Universal Credit.
In November, the government launched its Get Britain Working white paper, outlining ambitious plans to achieve 80% employment. The paper proposes fundamental reforms to the current support system, aimed at tackling the root causes of unemployment and inactivity such as health issues and skills needs.
Kendall told ITV earlier this month that she thought some claimants were “taking the mickey”, but that many wanted to return to work if their health improved or with more support to find suitable work.
There have also been suggestions that the government could remove the highest category of universal credit health claims, which can give claimants up to £5,000 more a year without having to look for work. This would remove the financial and practical incentives of being signed off sick, MPs claim.
Kendall said proposals for benefits reform would be revealed “within weeks”.
As part of its Plan for Change announced shortly after the election, the government recently launched a ‘jobs on wheels’ service aimed at driving up access to employment.
Mobile Jobcentre vans have been visiting areas with particularly high levels of unemployment and economic inactivity to offer people support with job searching, training opportunities and information on help with childcare costs.
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