Conservatives doubt Andy Burnham will grasp the challenge of bringing down benefits spending (Image: AP Photo/Kin Cheung)

Britain’s disability benefits bill has rocketed by 109% in the past five years, according to a new analysis which lays bare the cost to the taxpayer. The Institute of Economic Affairs (IEA) warns spending on disability benefits has more than doubled in just five years, with Personal Independence Payment (PIP) expenditure in England and Wales “soaring” from £13.7billion to £28.5billion.

Its research team is alarmed that Britain’s overall welfare bill, including pensions, has hit £334billion, more than the £329 billion raised through income tax. They are concerned that state pension spending increased by 43% in half a decade, from £102billion in 2020-21 to £146billion in 2025-26.

Dr Valentin Boboc, chief economist at the Institute of Economic Affairs, said: “Disability benefit spending has more than doubled in just five years, adding nearly £15billion to the annual welfare bill. This rate of growth should be a serious concern for anyone who cares about the sustainability of our public finances. Britain is now spending more on welfare than it raises through income tax. That should be a wake-up call for ministers, who cannot continue to ignore the growing cost of the benefits system. Reform must focus on making sure support reaches those who genuinely need it, while helping more people into work and reducing unnecessary spending. Without action, the growing welfare bill will put even greater pressure on taxpayers and the public services people rely on.”

Helen Whately believes tough love is needed to get young people into work (Image: Humphrey Nemar)

Conservative Shadow Work and Pensions Secretary Helen Whately responded to the figures, saying: “Labour will never get a grip on the welfare bill, because their Left-wing backbenchers will never let them. Britain is not getting twice as sick. Benefits have become easier to get, and people who are savvy have learnt how to game the system. [We] would end disability benefits for low-level mental health claims and bring back face-to-face assessments, alongside a root and branch review of PIP.”

A spokesperson for the Department for Work and Pensions said: “We are already reforming the welfare system by narrowing the gap between Universal Credit standard and health rates, restoring face-to-face assessments and investing £3.5billion in employment support to end the culture of people being signed off and written off. In addition, the share of PIP awards increased after a review has more than halved since 2024 and is at its lowest since records began, while this year more people had their award reduced or stopped than increased. We have also commissioned the Milburn and Timms reviews, due in the autumn, which will lay the foundation for sustainable reform.”

ALARM AS BRITAIN’S DISABILITY BENEFITS BILL ROCKETS BY 109% – ‘SHOULD BE A WAKE-UP CALL’ AS TAXPAYERS FACE GROWING PRESSURE!

Britain’s disability benefits spending has more than doubled in just five years, triggering fresh warnings about the long-term sustainability of the country’s welfare system.

New analysis from the Institute of Economic Affairs (IEA) reveals that spending on Personal Independence Payment (PIP) in England and Wales increased from £13.7 billion to £28.5 billion between 2020–21 and 2025–26.

That represents an extraordinary increase of 109 per cent, adding almost £15 billion to annual expenditure.

The figures have prompted renewed questions about how the government can protect people who genuinely depend on disability support while ensuring that public finances remain sustainable.

Dr Valentin Boboc, chief economist at the IEA, warned that the increase should be a serious concern for anyone worried about Britain’s financial future.

He said the figures should serve as a “wake-up call” for ministers.

The debate is now becoming increasingly important as the government considers changes to disability benefits and the wider welfare system.

THE £15 BILLION INCREASE THAT HAS RAISED ALARMS

The scale of the increase is attracting attention across Westminster.

According to the IEA analysis, annual PIP expenditure in England and Wales has risen from £13.7 billion to £28.5 billion in five years.

PIP is designed to help people with disabilities and long-term health conditions meet additional living costs.

Unlike some other benefits, it is not means-tested. Eligibility is based on how a person’s condition affects their daily living activities and mobility.

The benefit is therefore intended to provide financial assistance regardless of whether someone is employed or has savings.

However, the rapid increase in expenditure has raised questions about the number of people claiming, the assessment process and the long-term cost of providing support.

For ministers, the challenge is understanding what is driving the increase without undermining the financial security of disabled people.