According to plans being reviewed by the UK government, the Personal Independence Payment (PIP) may no longer provide financial assistance for mental health disorders. According to a report by the Centre for Social Justice (CSJ), the welfare cost is reaching unaffordable heights and economic inactivity is being caused by an increase in mental illness claims.
Currently, 1.4 million PIP claims, or 38% of all claims, are for mental health issues, mostly sadness and anxiety. The existing system’s detractors point to a 209% rise in claims pertaining to mental health during a four-year period, with expenses increasing from £221 million in 2019–20 to £683 million in 2023–2024. As authorities contemplate reorienting support from cash payments to alternate measures, the discussion becomes more heated.
Rising Costs and the Push for Reform
Spending on incapacity and disability benefits has increased by more than 40% since 2013, now reaching £64.7 billion—a sum 20% higher than the UK’s defence budget and accounting for 22% of total health spending. Projections indicate that this figure could rise to £100.7 billion by 2029–30, pushing the total welfare bill above £370 billion.
In response, the House of Lords Economic Affairs Committee has called for an accelerated overhaul of the system, urging Work and Pensions Secretary Liz Kendall to respond to reform recommendations by March 20. Among the most controversial proposals is the CSJ’s suggestion that PIP payments for mental health conditions be replaced with targeted, non-financial support. CSJ polling indicates that nearly half of the public (48%) supports such a move, compared to just 18% who believe claimants should continue receiving cash benefits.
The proposed changes come amid broader concerns about economic inactivity. Since 2019, there has been a 29% increase in the number of 16–24-year-olds who are exempt from seeking employment because of chronic illness, and a 42% increase in those aged 25–34. The majority of new claims are related to mental illness, with an estimated 20,000 more cases—a 24% increase—occurring in recent years.
Concerns Over Over-Medicalisation of Mental Health
Beyond welfare reform, the CSJ report, Change the Prescription, raises concerns about the growing tendency to medicalise normal emotional distress. It cautions that exposure to social media is causing mental health problems to rise, especially in young people.
According to reports, frequent social media users are 1.7 times more likely to suffer from a mental illness, and hospital admissions for self-harm among teenage females have quadrupled in recent years.
The CSJ argues that a lack of clear diagnostic criteria is exacerbating the issue. Psychiatrists acknowledge that many diagnoses are subjective, and research reveals that just three of the 49 health trusts in the UK have a clear definition of mental health. A
national standard for mental health diagnosis, better prescription oversight, and a greater emphasis on social prescribing—such as lifestyle changes and community engagement—as alternatives to medicine are also recommended in the report.
