The Tony Blair Institute has called on ministers to pull an “emergency handbrake” on Britain’s runaway sickness benefits bill, urging Whitehall to strip cash entitlements from claimants with mild depression, ADHD and other conditions the think tank argues are compatible with work.
In an intervention that will land squarely on the desks of finance directors and HR chiefs across the country, the institute founded by Sir Tony Blair has proposed a new statutory category of “non-work limiting conditions” covering anxiety, stress-related disorders, lower back pain, common musculoskeletal complaints and certain neurodevelopmental conditions. Claimants would receive treatment and employment support in place of benefits, in a shift the TBI insists could be introduced without primary legislation.
The proposals arrive at a critical moment for British employers. The Office for Budget Responsibility forecast in March that spending on health and sickness benefits for working-age adults will hit £78.1bn by 2029-30, a 15 per cent jump on this year’s outlay. With around 1,000 people a day becoming newly eligible for health and disability payments, business groups have grown increasingly vocal about the squeeze on the labour market and the corresponding drag on productivity.
The TBI’s report lands in awkward political territory for the Labour government, which last year tabled plans to tighten disability benefit eligibility only to gut its own proposals after a backbench revolt. Whitehall now points to a review led by Social Security Minister Sir Stephen Timms, expected to report later this year, as the vehicle for any further reform.
Dr Charlotte Refsu, a former GP and the institute’s director of health policy, said the welfare system was “drawing too many people into long-term dependency for conditions that are often treatable and compatible with work, and not doing enough to support recovery”. She added: “A system that leaves people on benefits without timely treatment or a route back to work is not compassionate. It is bad for the country and bad for people’s health.”
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