Former Conservative leader Iain Duncan Smith has sharply criticized the Department for Work and Pensions (DWP) for what he describes as “absurd” welfare payments to those with mental health conditions. He blames lenient Labour Party policies and weak oversight for encouraging a growing culture of dependency, all while taxpayers bear the cost.
Duncan Smith, who designed the UK’s Universal Credit system during his tenure as Work and Pensions Secretary from 2010 to 2016, is calling for stricter controls on mental health-related benefit claims. He estimates that tightening eligibility could save the welfare system a staggering £7 billion.
Mental health issues have become the leading driver behind sickness benefit claims, with 1.6 million Work Capability Assessments for mental and behavioural disorders conducted since 2022. According to Duncan Smith, over four million people currently receive benefits without needing to seek employment, with approximately 3,000 new sickness claims filed daily, primarily due to rising mental health cases.
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He warns that health-related benefits could reach £100 billion annually by the end of the decade—exceeding the UK’s defence budget. An economically inactive claimant, receiving benefits topped up with health and housing payments, can currently earn the equivalent of a pre-tax salary exceeding £30,000. This situation means that about a quarter of the workforce—approximately six million full-time employees, based on analysis from the Centre for Social Justice—earn less after tax than many benefit recipients receive.
Duncan Smith advocates narrowing mental health claims to only the most severe cases, redirecting saved funds towards increased NHS therapy support. He insists that the benefit rules he introduced must be reinstated and calls for reducing tax burdens on employers, which he argues contribute to rising youth unemployment.