Wales
Long-term working-age recipients of out-of-work benefits
Key points
- There has been little change in the number of long-term working-age recipients of key out-of-work benefits over the last decade. This lack of change contrasts with the decline in the total number of recipients of key benefits (see the indicator on all recipients of out-of-work benefits).
- Sickness or disability is now overwhelmingly the single most important reason why working-age people claim out-of-work benefits over a long period. Fourth-fifths of working-age people – 170,000 people – receiving an out-of-work benefit for two years or more are classified as sick or disabled.
- This proportion has risen from 70% a decade ago. This is mainly because the number of people receiving long-term out-of-work benefits for other reasons has fallen. In particular, the number who are long-term unemployed has fallen by three quarters.
- Mental or behavioural disorder is the medical condition most likely to be exhibited by working-age people who are long-term claimants of out-of-work disability benefits, namely Incapacity Benefit (IB) or Severe Disablement Allowance (SDA). This is a third of all long-term claimants.
- Long-term sickness or disability, as measured by people claiming either Incapacity Benefit or Severe Disablement Allowance for two years or more, is by no means mainly confined to people coming up to retirement. Just two-fifths of those claiming one of these benefits for two years or more are aged over 55. A further quarter are aged between 45 and 54 and the remaining one third are aged under 45.
- Over the last decade, Income Support / Jobseeker's Allowance for a couple with two children has risen by two-fifths after allowing for inflation while that for a couple with one child has risen a quarter, the same as the rise in average earnings. By contrast, Income Support for a couple with no children has stayed unchanged (apart from inflation) over the decade, falling ever further behind average incomes. Income Support for a single working-age adult without dependent children has likewise not changed. See the UK indicator on out-of-work benefit levels.
Graph 1: Over time
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Graph 2: By reason
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Graph 3: By age
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Definitions and data sources
The first graph shows all those of working age who were in receipt of a 'key out-of-work benefit' for two years or more.
'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 and carers. Note that a small number of 'others' have been omitted from the graph.
As can be seen from the first graph, the majority of long-term claimants of key out-of-work benefits are sick or disabled. In this context, the second graph shows, for the latest year, a breakdown by reason for those who have either been in receipt of Incapacity Benefit for two years or more or are in receipt of Severe Disablement Allowance.
The third graph shows, for the latest year, an age breakdown for those who have either been in receipt of Incapacity Benefit for two years or more or are in receipt of Severe Disablement Allowance.
The data source for all the graphs 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.
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.