…reports surge in Universal Credit Claimants
The number of people on Universal Credit in the United Kingdom (UK) who are classified as having a “Limited Capability for Work Related Activity” (LCWRA) has surged to 1.8 million, according to newly released Government figures.
This means that nearly two million people are now officially considered unable to work due to health or disability reasons, marking a significant rise in economic inactivity.
Government data, published on Thursday last week, highlighted a dramatic increase in the LCWRA category.
In 2020, only 360,000 people were classified as too ill to work. That number has since skyrocketed by 383%, reaching 1.8 million as of March 2025.
The upward trend has continued year after year, with the most recent jump from 1.4 million to 1.8 million occurring in just the past year alone.
Officials have linked part of the rise to flaws in the current Work Capability Assessment (WCA) system, which the Government is now planning to reform.
Once placed in the LCWRA category, many individuals receive little to no employment support, effectively removing them from the workforce altogether.
Young people have been particularly affected by this trend as Government data shows a sharp increase in the number of 16 to 24-year-olds placed in the LCWRA category, rising from 46,000 to 160,000 since the pandemic began—a 249% surge.
The increase reflects a broader issue of young people being locked out of employment and education, with nearly one million currently not in education, employment, or training.
In response, the government has outlined plans for a Youth Guarantee, aimed at ensuring that every young person has access to work, education, or training opportunities.
As part of a broader strategy to reduce economic inactivity, the Government is also moving forward with welfare reforms.
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These plans include giving local mayors more power to tackle employment challenges, modernizing Jobcentres, and providing additional support for young people seeking work.
Liz Kendall, Secretary of State for Work and Pensions, emphasised the need for urgent change, stating that the current system has failed millions who want to work but cannot access the right support.
She reaffirmed the Government’s commitment to fixing the benefits system and ensuring it genuinely helps people re-enter the workforce and improve their standard of living.
Criticism of the welfare system has intensified, particularly regarding its rigid classification of people as either fit or unfit for work.
Reports suggest that many individuals feel forced to declare themselves incapable of working in order to receive financial assistance.
Government data reveals that 67% of Universal Credit recipients who underwent a Work Capability Assessment in the past five years were placed in the LCWRA category.
To address this, the Government has pledged £26 billion in NHS investments to improve healthcare services and reduce waiting lists.
Additionally, £250 million has been allocated to the “Get Britain Working” initiative, which includes redeploying 1,000 Work Coaches to support 65,000 sick and disabled individuals in finding employment.
While some rise in LCWRA numbers was anticipated due to the transition from legacy benefits to Universal Credit, the scale of the increase has exceeded expectations.
The Department for Work and Pensions has reported that 70% of the recent rise in cases was unanticipated.
The UK remains the only G7 nation where economic inactivity remains higher than pre-pandemic levels, raising concerns about the long-term impact on both the workforce and the welfare system.
As the Government pushes forward with its proposed reforms, all eyes will be on whether these measures can effectively reverse the trend and create a more inclusive labor market.
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