Sickness Benefits Projected to Surpass Minimum Wage

The Centre for Social Justice projects that by 2026-27, some Britons on sickness and disability benefits will receive up to £2,500 more annually than full-time workers on the national living wage after taxes. Universal Credit claimants with average housing benefit and Personal Independence Payment (PIP) could receive £25,000, with some cases reaching nearly £37,000 for those with additional needs. Political debate has intensified as Labour MPs rebelled against diluted welfare reforms, contributing to a £5 billion gap in public finances and sparking concerns over a potential future wealth tax. Conservative leader Kemi Badenoch has renewed calls for stricter welfare assessments and limits on benefits for foreign nationals, citing a 'ticking time bomb' of welfare dependency. Critics warn that the pandemic has exacerbated long-term benefit reliance and undermined work incentives. The mounting cost of sickness and disability benefits is expected to further strain the UK economy as claims and spending continue to rise.