Alarm as Britain’s disability benefits bill rockets by 109% – ‘should be a wake-up call’

An Institute of Economic Affairs analysis says spending on disability benefits in England and Wales rose by 109% over five years, prompting renewed debate about welfare costs and reform. The institute argues that growing expenditure puts pressure on public finances, while government and opposition figures disagree over the causes and the right response.

Personal Independence Payment spending rose from £13.7 billion to £28.5 billion, while state pension spending increased by 43%, from £102 billion in 2020-21 to £146 billion in 2025-26. The analysis puts the overall welfare bill, including pensions, at £334 billion, above the £329 billion raised through income tax. The Conservatives propose restricting some claims and restoring face-to-face assessments; the Department for Work and Pensions says it is investing £3.5 billion in employment support and pursuing reviews and other reforms.