United Kingdom
Working-age out-of-work benefit recipients
Key points
- 4.7 million people were in receipt of an out-of-work benefit in February 2008. Of these, 2.7 million (60%) were sick or disabled, 0.8 million (17%) were unemployed and 0.7 million (16%) were lone parents.
- The total of 4.7 million compares with 5.5 million in 1998.
- Most of the fall has been in unemployed claimants, the numbers of whom almost halved over the period. In contrast, the number of sick or disabled claimants remained broadly unchanged.
- Sick and disabled people now make up three-fifths of all working-age people in receipt of an out-of-work benefit.
- Two-fifths of all claimants of Incapacity Benefit or Severe Disablement Allowance have mental or behaviour disorders. This is more than twice the size of the next largest group, namely those with musculo-skeletal disorders.
- Two-fifths of all working-age claimants of Incapacity Benefit or Severe Disablement Allowance are aged less than 45.
- Twice as many working-age people in the North East and Wales are recipients of out-of-work benefits as in the South East.
Graph 1: Over time
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Graph 2: By reason
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Graph 3: By age
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Graph 4: By region
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Download a spreadsheet with the district-level statistics
Map
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View interactive version of map (by ward rather than by super output area; opens in a new window)
Download a spreadsheet with the ward-level statistics
Why this indicator was originally chosen
This indicator shows the trends in the total numbers of working age people in Britain whose incomes depend, at least in part, on one of the following benefits/tax credits: income support, jobseeker's allowance, family credit/working families tax credit and disability working allowance/disabled person's tax credit. To allow like-for- like comparisons over time, figures are presented both including and excluding the recent tax credits and the benefits that they replaced.
When using benefit data, it is important to remember that a considerable number of people who have incomes low enough to make them eligible to claim do not do so. Take-up varies across the population. It is thought that in 1999-2000, between 87 and 95% (by caseload) of eligible parents claim income support. The equivalent rate for pensioners is considerably lower at 63-82%. Income Related Benefits: Estimates of Take-up, Department of Social Security, 2000.
Another important factor is deductions from benefit. In 1996, a third of all Income Support claimants were having some money directly deducted from their benefit income. Money was deducted to pay for electricity, gas and water, for housing costs, including mortgage arrears, for Council Tax, and for recovery of fines, Social Fund payments and Child Support Maintenance.
Definitions and data sources
The first graph shows the numbers of working-age people claiming one or more 'key out-of-work benefits'.
'Key out-of-work benefits' is a DWP term which covers the following benefits: Jobseeker's Allowance, Income Support, Incapacity Benefit, Severe Disablement Allowance and Carer's Allowance. Note that this list is slightly different from 'key benefits', which also include Disability Living Allowance.
For each year, the total is broken down by type of claimant, namely: unemployed, sick or disabled, lone parents, carers and others.
As can be seen from the first graph, the majority of claimants of key out-of-work benefits are sick or disabled. In this context, the second graph provides, for the latest year, a breakdown of recipients of Incapacity Benefit or Severe Disablement Allowance by reason.
The third graph shows, for the latest year, an age breakdown for those who in receipt of either Incapacity Benefit or Severe Disablement Allowance.
The fourth graph shows, for the latest year, how the proportion of working-age people in receipt of key out-of-work benefits varies by region, with the data shown separately according to whether or not the individuals are sick or disabled.
The map shows how the proportion of the working-age population who are in receipt of a key out-of-work benefit varies by super output area. The data is for February 2008.
The data source for all the graphs and map is the DWP Work and Pensions Longitudinal Study. The data is for the month of February of each year. The data has been analysed to avoid double-counting of those receiving multiple benefits by matching data from individual samples. ONS population estimates have been used to calculate the proportions in the fourth graph.
Overall adequacy of the indicator: high. The data is thought to be very reliable and is based on information collected by the DWP for the administration of benefits.
External links
- See IFS report entitled A survey of the UK benefit system.
- See the HM Revenue & Customs site on tax credits.
- See the DWP site on Pension Credit.
Relevant 2007 Public Service Agreements
Overall aim: Maximise employment opportunity for all.
Lead department
Department for Work and Pensions.
Official national targets
None.
Other indicators of progress
Overall employment rate taking account of the economic cycle.
Narrow the gap between the employment rates of the following disadvantaged groups and the overall rate: disabled people; lone parents; ethnic minorities; people aged 50 and over; those with no qualifications; and those living in the most deprived Local Authority wards.
Number of people on working age out-of-work benefits.
Amount of time people spend on out-of-work benefits.
Previous 2004 targets
As part of the wider objective of full employment in every region, over the three years to Spring 2008, and taking account of the economic cycle, demonstrate progress on increasing the employment rate.
As part of the wider objective of full employment in every region, over the three years to Spring 2008, and taking account of the economic cycle:
- increase the employment rates of disadvantaged groups (lone parents, ethnic minorities, people aged 50 and over, those with the lowest qualifications, and those living in local authority wards with the poorest initial labour market position); and
- significantly reduce the difference between the employment rates of the disadvantaged groups and the overall rate.
Relevant government policies
- National minimum wage
- Tax credits and their predecessors
- Increases in child benefit
- Pension credit and its predecessors
- Second state pension
The numbers
Graph 1
| Thousands | ||||||
|---|---|---|---|---|---|---|
| Year | All cases | Sick or disabled | Lone parents | Unemployed | Carers | Others |
| 1997 | 5,950K | 2,710K | 1,030K | 1,760K | 310K | 140K |
| 1998 | 5,530K | 2,750K | 980K | 1,370K | 310K | 120K |
| 1999 | 5,430K | 2,740K | 940K | 1,310K | 310K | 120K |
| 2000 | 5,290K | 2,780K | 920K | 1,150K | 310K | 110K |
| 2001 | 5,160K | 2,850K | 910K | 1,000K | 310K | 80K |
| 2002 | 5,090K | 2,860K | 880K | 960K | 330K | 70K |
| 2003 | 5,070K | 2,890K | 850K | 950K | 350K | 40K |
| 2004 | 4,990K | 2,890K | 830K | 870K | 360K | 40K |
| 2005 | 4,890K | 2,870K | 790K | 820K | 360K | 40K |
| 2006 | 4,940K | 2,820K | 780K | 940K | 370K | 30K |
| 2007 | 4,870K | 2,780K | 770K | 900K | 370K | 50K |
| 2008 | 4,720K | 2,740K | 740K | 800K | 380K | 50K |
Graph 2
| Reason | Number of claimants (Thousands) | Share |
|---|---|---|
| Mental and behaviour disorders | 1,110K | 43% |
| Musculoskeletal | 460K | 17% |
| Circulatory or respiratory | 200K | 7% |
| Nervous system | 170K | 6% |
| Injury and poisoning | 150K | 6% |
| Other classified | 270K | 10% |
| Other not classified | 310K | 11% |
Graph 3
| Age group | Number of claimants | Share |
|---|---|---|
| Up to 24 | 170K | 6% |
| 25-34 | 340K | 13% |
| 35-44 | 580K | 22% |
| 45-54 | 740K | 28% |
| 55-64 | 810K | 31% |
Graph 4
| Region | Sick or disabled | Other | Total |
|---|---|---|---|
| East | 5.4% | 4.4% | 9.8% |
| East Midlands | 6.9% | 4.9% | 11.8% |
| London | 6.5% | 6.6% | 13.1% |
| North East | 10.3% | 7.1% | 17.4% |
| North West | 9.8% | 6.2% | 16.0% |
| Scotland | 9.6% | 5.4% | 15.0% |
| South East | 4.8% | 3.7% | 8.5% |
| South West | 6.5% | 3.9% | 10.4% |
| Wales | 11.1% | 5.9% | 17.0% |
| West Midlands | 7.5% | 6.6% | 14.1% |
| Yorkshire and The Humber | 7.5% | 5.8% | 13.3% |