Universal Credit work support gaps leave millions stranded

Nearly two million people on Universal Credit are receiving no support to find work, according to new government figures, raising concerns over the long-term impact of the benefits system on employment.

The Department for Work and Pensions (DWP) has revealed that 1.8 million claimants are in the Limited Capability for Work Related Activity (LCWRA) category, meaning they are considered too ill to work and do not receive employment support. This marks a 383% increase since the start of the pandemic when 360,000 people were in this category.

The figures show a sharp rise in young people being placed in LCWRA, with the number of 16 to 24-year-olds in the category increasing from 46,000 to 160,000—a 249% jump. The government warns that this trend is contributing to a growing number of young people not in education, employment, or training.

Work and Pensions Secretary Liz Kendall MP has pledged to reform the welfare system, arguing that the current approach locks too many people out of work. “Millions of people have been locked out of work by a failing welfare system which abandons people—when we know there are at least 200,000 people who want to work and are crying out for the right support and a fair chance,” she said.

The government has stated that the current Work Capability Assessment (WCA) system is flawed, forcing claimants into a binary classification of either “fit for work” or “not fit for work.” Under this system, those deemed unfit for work are placed in the LCWRA category, where they no longer receive employment support or engagement, often indefinitely.

Critics argue that financial incentives within Universal Credit encourage people to claim they are unable to work, as those classified as LCWRA receive an additional £416.19 per month on top of the standard Universal Credit rate. Over the past five years, 67% of Universal Credit claimants who underwent a WCA were placed in the LCWRA category.

To address these issues, the government is proposing major welfare reforms. This includes investing £26 billion in the NHS to improve health services, tackling waiting lists with an additional two million medical appointments, and hiring 8,500 more mental health workers. Additionally, a £250 million plan has been introduced to get more people into work, with 1,000 Work Coaches redeployed to support around 65,000 sick and disabled people.