As the number of long-term sickness claimants on Universal Credit reaches 2.3 million, think tanks propose urgent reforms to the welfare and childcare systems to better serve the UK’s changing demographic.
Universal Credit (UC) is undergoing scrutiny with suggestions for crucial adjustments amid a significant rise in long-term sickness claims in the UK. A series of reports by the Resolution Foundation has highlighted a near doubling in the number of claimants unable to work due to poor health since the inception of UC in 2013, now standing at 2.3 million. With projections indicating that by 2029, around seven million families will be receiving UC, the think tank has called for reforms to better support individuals with disabilities and long-term health conditions, noting that the current design of UC inadequately addresses the needs of this growing demographic.
Despite UC amalgamating various benefits into a single payment meant to simplify the benefits system and encourage employment, there has been criticism related to technical delays, funding cuts, and inadequate support levels, particularly affecting disabled individuals and those with long-term illnesses. Claimants transitioning to UC, including single individuals with long-term disabilities, face potential annual losses, with predictions of £2,800 less a year for some.
The Department for Work and Pensions (DWP) defends UC as a modern system beneficial for many, particularly in aiding quicker employment transitions. Yet, the challenges of an aging and increasingly unwell population continue, with clear implications for the welfare landscape and the need for a comprehensive review of UC to ensure it meets the demands of the demographic changes.
Parallel to concerns about UC, issues with England’s childcare system have also been raised by the Fawcett Society. Highlighting systemic failures and a lack of transparency, the society points to the negative impacts on women’s employment and the wider economic implications, including rising gender pay gaps and declining birth rates. Although recent government interventions include a £4 billion extension of free childcare, the system’s high costs and resulting nursery closures call for a wholesale reform to ensure better accessibility and quality.
These findings collectively underscore the need for targeted policy reform in both the welfare and childcare systems to address the evolving needs of the British population effectively.