'Emergency handbrake' needed on sickness benefits, Blair think tank says

An important development from the financial markets: 'Emergency handbrake' needed on sickness benefits, Blair think tank says 2 days ago Share Save Add as preferred on Google Michael Buchanan Social affairs correspondent Getty Images The government should introduce an "emergency handbrake" to cut the number of people who are receiving health and disability benefits, a think tank says. The Tony Blair Institute (TBI) says people diagnosed with conditions such as mild depression or ADHD should not be eligible for cash benefits. It argues such conditions should be classed as "non-work limiting" - with people offered support rather than money.

Ministers said they would "consider the report" but learning disability charity Mencap called the proposals "deeply unhelpful and ill-informed. " Welfare cuts: What are the Pip and universal credit changes? The government tabled plans to restrict eligibility for disability benefits last year, but ended up largely gutting its own plans after a revolt from Labour MPs.

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It says it remains committed to making sure the system is "fit for the future", but this work now depends on a review led by Social Security Minister Sir Stephen Timms, expected later this year. With 1,000 people a day becoming eligible for health and disability benefits, the Conservatives and Reform UK have urged more restrictive qualification criteria, particularly for people with conditions such as anxiety. In March, the Office for Budget Responsibility forecast that spending on health and sickness benefits for working age people would reach £78.

1bn by 2029-30, a 15% increase on this year. The TBI argues that the government should immediately implement a series of changes to reduce the number of people claiming these benefits. The think tank, which was set up by the former PM and describes itself as non-partisan, says ministers should create a new category of "non-work limiting conditions", which would apply to anxiety or stress-related disorders.

Researchers also said the new category should cover lower back pain, common musculoskeletal conditions and neurodevelopmental disorders where evidence shows they are compatible with work. They say these changes could be introduced without the the need for a full act of Parliament, whilst more detailed reform proposals are developed. 'Long-term dependency' They have also suggested every claimant should have a diagnosis for a condition before applying for benefits, with more frequent and rigorous reassessment of those on sickness benefits.

While they have been unable to say how much these measures would save, or how many recipients would lose their entitlement to benefits, they say savings should be re-invested into employment support and treatment, particularly for mental health and musculoskeletal conditions.

Financial markets are tracking the development closely as investors assess the likely impact.