Money Wellness

benefits

Published 02 Dec 2024

3 min read

Millions being failed by benefits system

Millions of people claiming benefits are being failed by the system, a new Channel 4 Dispatches documentary has revealed.

An illustration of a sad young woman sitting with her head down as she hugs her knees.
Michelle Kight - Money Wellness

Written by: Michelle Kight

Financial content writer

Published: 2 December 2024

With three million people now relying on long-term sickness support, Britain’s Benefits Scandal looks at the reasons behind this and the most affected areas in the country.  

Where do people need the most support?

Once a bustling fishing port, Grimsby has been named as the place where more people are claiming benefits than working.

In the East Marsh and Port area of the town:

  • 53% of working-age adults claim benefits
  • 33% claim sickness benefits
  • 11% are on jobseeker’s allowance
  • 9% get other types of benefits

But Grimsby isn’t alone in this trend – a similar picture is painted in Blackpool and Birkenhead:

 

Blackpool

Birkenhead

Sickness benefits

29%

32%

Jobseeker’s allowance

14%

9%

On average, people in these areas live 12 years less than the national average. This raises concerns about their health, wellbeing and opportunities.

Real people facing real challenges

Some think claiming benefits is a lifestyle choice, but many people rely on benefits because they have few other options.

Most claimants are dealing with a system that isn’t working for them, which can make them feel trapped and helpless.

Despite any negative views, benefits provide essential support for those in need.

Each year, the UK spends about £137bn on benefits for working-age individuals, including £90bn for disability payments and £35bn for housing support.

Recently, the number of people on long-term sickness benefits has increased by one million over five years.

  • Some people are too sick to even look for work.
  • 69% of those on universal credit for health reasons have mental health challenges.
  • Half of those deemed fit for work still face health problems.

The growing need for support

Recent talks about welfare reform have brought up some possible changes.

For example, Labour wants to link the NHS with job support services to help people return to work.

This could help a lot of people, if done carefully.

Some ideas include hiring people for non-clinical jobs and placing work coaches in mental health clinics.

It's important that any reforms aim to understand the root problems instead of just tightening rules.

Further details about any changes will be revealed in the new year, so keep an eye on our blogs for the latest updates.

Britain’s Benefits Scandal: Dispatches will be shown on Channel 4 at 8pm on Monday 2 December.

Michelle Kight - Money Wellness

Written by: Michelle Kight

Financial content writer

Michelle is a qualified journalist who spent over seven years writing for her local online newspaper. Having grown up in some of the North West’s most deprived areas, she has a first-hand and empathetic understanding of what it means to face serious money worries. With a strong interest in mental health issues, she is a keen advocate of boosting the accessibility of financial wellness services.

Published: 2 December 2024

The information in this post was correct at the time of publishing. Please check when it was written, as information can go out of date over time.

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Michelle Kight - Money Wellness

Written by: Michelle Kight

Financial content writer

Published: 2 December 2024

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