More than half of the increase in disability benefits comes from increased mental health claims. the study.
Since the pandemic, the number of working-age adults in the UK and Wales has increased by nearly 1 million in 2024 to 2.9 million, as claimed by 7.5% of 16-64 years old in 2024.
Reported by an influential economic think tank, the Institute of Fiscal Research (IFS) calculated that around 500,000 of this rise was due to claims of mental illness.
In 2002, mental health or behavioral issues were the main condition for 25% of claimants, but by 2019 it rose to 40%, accelerating even further since Covid-19. In 2024, the proportion of people with disabilities benefited from mental or behavioral issues, whose main condition was mental or behavioral issues (approximately 3.3% of the working-age population). This means that “55% of the increase in profits after a disability can be explained primarily through mental health claims.”
The government is expected to announce a rapid reduction in its main disability benefits, Individual Independent Payments (PIP), and claims it is advocating the disability benefits bill, which is a rise of nearly £13 billion from 2019-20 to 2023-24 to £48 billion.
PIP does not mean that it is tested or linked to employment status, but it is intended to help claimants pay extra costs for disability as they earn between £1,500 and £9,610 a year, depending on the level of disability.
However, it concludes that IFS’ assessment of the growth of people advocating disability benefits may have “convincing evidence that mental health has deteriorated since the pandemic” and that it may contribute to these increases in the disability benefits bill.
One factor is the stubbornly high mortality rates in England and Wales, with 5.5% above the average death rate for 2015-19 in 2023, most of these are due to alcohol, drugs, or suicide.
The Joseph Rowetree Foundation and Health Foundation-funded report, after adjusting for demographic changes, calculates that in 2023 there were around 3,700 deaths from alcohol, drugs and suicide among working-age adults compared to before the pandemic.
As people with mental health conditions are at a much higher risk of death from these causes, an increase in mortality from these causes also indicates an increase in the prevalence of severe mental illness, the study says.
The rate of illness absent per worker was 37% higher in 2022 than in 2019 – IFS says population health is deteriorating, IFS says.
In all, the report calculates that approximately 13-15% of working-age people have long-term mental health or behavioral status. Demand for mental health services has increased by more than 36% at pre-pandemic levels as 2 million people were in contact with NHS Mental Health Services in December 2024.
Eduin Latimer, research economist at IFS and author of the report, said the evidence in the report “has “deteriorated the mental health of the entire population” and “may also contribute to rising benefits bills.”
In response to this research, Brian Dow, Associate Chief Executive Officer of Rethink Mental Insior, said: Mental health services struggle to meet growing demand, with long waits leading to suicide attempts, A&E visits and loss of livelihoods.
“Growth doesn’t come from novel benefits to reduce the most uncomfortable or essential services, it comes from improving access to timely mental health treatments. It also requires a more urgent understanding of the complex reasons behind why more people are experiencing mental health issues, focusing on preventing people from feeling sick in the first place.”
Ian Porter, senior policy advisor to the Joseph Rown Tree Foundation, said: “While greater openness about mental health has once helped many people live in hidden states, an increase in deaths from alcohol, drugs, or suicide suggests that reducing stigma does not eliminate the most serious consequences of rising mental disorders. This trend is genuine and growing, and governments need to look closely at the health of the country rather than relying on reduced profits to resolve the issue.”
A government spokesman said, “It is clear that the current welfare system is broken and reform is needed, it is fair to taxpayers, and it supports people with illnesses and disabilities who can work to find employment, and ensure that people receive the support they need.
“Without reform, more people will be locked out of work, even though many people want jobs. It’s not just bad for the economy, it’s bad for the people, and that’s why we’re coming up with reform proposals soon as part of our plan of change.”
