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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.
In short
- Disability benefit spending in England and Wales more than doubled in five years.
- The overall welfare bill reached £334 billion, above income tax receipts.
- Government and opposition differ on how to make welfare spending sustainable.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
The rapid rise in disability benefit spending, alongside a welfare bill exceeding income tax receipts, may be difficult to sustain as demand grows and public services compete for limited funds. Supporters of tighter eligibility rules, more face-to-face assessments and employment support argue these could improve confidence in decisions, help people who can work to do so, and direct assistance to those with the greatest needs.
The case against
Higher spending may reflect more people experiencing disability or long-term illness, greater need, or changes in access and assessment, rather than widespread misuse of the system. Restricting claims risks reducing essential support for disabled people, while face-to-face assessments can impose additional burdens; advocates of a cautious approach argue reforms should address barriers to work and improve services without undermining financial security.
Explained simply
Personal Independence Payment, or PIP, is a benefit in England and Wales for people whose disability or long-term health condition affects daily life or getting around. It is separate from the state pension, which provides income in later life, and from support linked to being out of work.
The Institute of Economic Affairs is a think tank that has analysed the cost of benefits. Its figures have fed into a wider debate about how rising spending should be funded and whether the system helps people who can work to find jobs. The Conservatives and the Department for Work and Pensions differ over what changes are needed.