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“Our welfare system is broken, it is indefensible, economically and morally, and we must and we will reform it.” 

Not the words of a Conservative, but those of the Prime Minister back in March. Yet, weeks later, he was forced to abandon minor changes to the disability benefits system by Labour backbenchers. Now the Government’s attempts at meaningful reform and reducing spend have been abandoned altogether. It turns out that soundbites were never going to be enough to enable the serious analysis that is needed for our welfare system to be reformed in a way that provides support for those that need it, and helps those who don’t get into work. 

Our welfare system, originally designed to help those in need live normal fulfilling lives, has evolved, becoming something almost unrecognisable. There is a growing recognition that we have created a system that actively disincentivises millions of people from work. Conversations with employers, charities and those claiming benefits reveal a pattern that is becoming hard to ignore. For many, the welfare system no longer provides a route back to work. Instead, it encourages people to not even try. It is disastrous for those individuals whose life chances are affected – and catastrophic for the country’s finances.

There are examples everywhere. Businesses say they cannot fill apprenticeship places despite the fact that those who succeed could earn salaries of £50,000 within a few years. The roles remain unfilled despite unemployment rising over the past year. Why? Because, for many potential applicants, sickness benefits offer a higher income than the minimum wage, and once someone is signed off, it can be far easier, and in some cases better paying, to stay in the system than to step out of it. The result is wasted potential on both sides: employers desperate for workers and young people who never get the incentive to try. 

This experience reflects a broader structural issue in the welfare system: rather than simply providing a safety net, a swathe of benefits and support schemes have created conditions where staying on benefits is more attractive. The Personal Independence Payment traps people into inactivity. Examples of this are not hard to find, there are plenty of stories of people turning down courses and training that could have helped them build careers due to fear that it would be taken as evidence that he no longer needed extra support. 

Worse still, there is an entire commercial ecosystem for advisers who profit from advising vulnerable claimants: “sickfluencers”, paid for advice guides, application coaches – all helping applicants game the system to maximise the chances of claims being accepted. 

The same pattern exists for fit notes. GPs are being asked to make judgements about a person’s capacity for work that they often feel unqualified to make. Fit notes are sometimes issued after brief phone calls and often renewed without review. Some patients have even been asked how long they would like to be signed off. What should be a temporary measure has become, for many, a gateway to long-term absence from work.

These examples show how far the welfare system has strayed from its purpose. Work is not only a means of earning; it provides routine, confidence and connection. For people managing long-term health conditions, being in work can often improve wellbeing rather than harm it. Yet the system is structured in ways that reinforce dependency. The focus remains on incapacity rather than on the adaptations that could make employment possible. A welfare state that truly reflects compassion would support people in rebuilding their independence, not assume that their limitations define them.

There are practical steps that could begin to repair this. Initial benefit assessments should return to being face to face, allowing for a more accurate understanding of what claimants can do. Sick notes should involve proper medical review, with responsibility shared across health and employment services rather than resting solely with GPs. Benefits for minor or short-term conditions should be replaced with targeted support to help people back into work. Schemes offering discounted products and services should be limited only to those with serious medical conditions. Most importantly, disability benefits should only be available for those with serious conditions.

Reform will require a shift in attitude, one that sees work as part of recovery and welfare as a means to restore independence. The welfare system can still be a source of pride if it once again rewards effort, encourages aspiration and ensures that help is reserved for those who truly need it.

I have seen how an effective system can work. A friend of mine has autism and ADHD and struggles in conventional workplaces. The noise, the interruptions, and the unspoken social rules make it almost impossible for her to function in an office. Yet when she is given the chance to work from home, to set her own hours, and to concentrate during the quiet of the night, she thrives. She does not need a subsidised BMW through Motability, nor coaching on how to navigate a PIP form. What she needs is flexibility and minor adjustments in workplaces that allow her to contribute at her best. That is what genuine support should mean: removing practical barriers and creating conditions where people can succeed, rather than providing perks that do nothing to address the real challenges of disability.

Britain’s strength has always come from the willingness of its people to work hard and build a future. The task now is to design a welfare system that reflects that same spirit, one that enables the maximum number of people who can work to do so.

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About the author

Policy Fellow

Lana Hempsall is a Policy Fellow at Onward. She is a county councillor, investor, entrepreneur, author, podcaster and executive coach, interested in policy supporting disabled people. Over the course of more than a decade in the energy sector, she co-founded Energy Market Analysis Ltd and Conservatives in Energy.

Lana was diagnosed as blind in her teens. She has recently set up the Welfare Information Network. Alongside her work in energy and local government, Lana is an advocate for welfare reform, frequently writing for the Spectator, ConHome and CapX.

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