900,000 children are in families receiving incapacity support through Universal Credit

Action for Children has looked at new government data on households that are claiming financial support through Universal Credit due to a health condition or disability that impacts their ability to work.

In this blog, we will:

• Present new data on households in Great Britain receiving incapacity support through Universal Credit, with breakdowns by parliamentary constituency.
• Highlight findings from recent Action for Children research with families on incapacity benefits.
• Discuss how the government's plans to find billions in savings through its upcoming health and disability benefits Green Paper poses a major risk for its Child Poverty Strategy.

Our analysis of Department for Work and Pensions (DWP) data shows there are almost 900,000 children in households receiving incapacity support through Universal Credit. That is one in every 17 children in Great Britain.

The data shows:

• Most households claiming incapacity support through Universal Credit are those without children (71%). This is largely made up of single people without children (63%), followed by couples without children (8%).
• However, the remaining 29% of households are those with children, comprising single parents with children (18%) and couples with children (11%).
• Within these 483,000 households, we estimate there are approximately 877,000 children.

We used population data to estimate the percentage of children in each constituency that live in households relying on Universal Credit (UC) incapacity support.

Table 2 shows the 20 constituencies with the highest proportion of children in these households, along with the corresponding number of children.

From the data, we can see:

Sheffield Brightside and Hillsborough, Blaenau Gwent and Rhymney, and Blackpool South have the highest proportion of children in the constituency living in a household receiving UC incapacity support, at around 13%.

The proportion of children in Sheffield Brightside and Hillsborough is more than eight times higher than in Wokingham (1.6%), the constituency with the lowest proportion of children in UC incapacity households, which highlights the unequal spread of those affected.

This interactive map shows the percentage of children claiming UC incapacity support by constituency.

You can search for your constituency using the search bar or click directly on the map. The popup also shows the number of children in UC incapacity households in that constituency, as well as the overall number of UC incapacity households.

The map and constituency tables reveal a clear pattern of higher rates of households claiming incapacity support through Universal Credit in the former industrial areas of South Wales, North East and North West England, a clutch of seaside towns and on the fringes of key UK cities like Birmingham, Liverpool, Manchester and London.

Constituencies such as Blackpool South, Swansea West, Sheffield Brightside and Hillsborough, Great Grimsby, and Middlesbrough and Thornaby have both higher rates of children in UC incapacity households, as well as some of the highest numbers of overall households claiming Universal Credit because of sickness or disability.

It is no coincidence that these areas are associated with weaker local economies and looser labour markets. Researchers from Sheffield Hallam University have highlighted how incapacity benefit claimants are particularly concentrated in Britain’s former industrial areas and in coastal town economies that suffered badly from changes in tourism. The jobs available in these areas, say these experts, are often not well matched to the capabilities of claimants with health difficulties or disabilities.

Our Sick and tired report published in October 2024 revealed the financial, practical and emotional hardships faced by families relying on incapacity benefits to survive while balancing ill-health or disabilities.

In a survey with parents receiving incapacity benefits, we found that:

• One in three are behind on bills (29%), with one in seven experiencing severe financial problems (15%).
• Nearly half had felt depressed or down in the past month (48%).

When asked what could help them return to work:

• A third said bringing down NHS waiting lists (33%).
• A quarter called for more flexible public sector jobs for people with disabilities (26%).
• 23% called for more specialist advisors in jobcentres.

Many of our findings are echoed in recently published DWP research with health and disability claimants, with 27% believing they could work in the future, but only if their health improved. Only 5% agreed they could work right now if the right job or support were available. The relationship between claimants and the DWP was recognised as a key challenge, with 60% worried they would be forced to look for unsuitable work.

The previous government put forward plans to find £3 billion in savings from the incapacity benefits bill by tightening up the assessment process. This would have resulted in 400,000 fewer claimants with health issues being granted LCWRA status, while official forecasts showed that very few would have successfully moved into work.

This was partly justified on the basis that the rise in remote working has created new opportunities for disabled people.

What the new Labour government is proposing

The new Labour government has confirmed that they will re-consult on the same changes. Additionally, media reports suggest their upcoming Green Paper will include much more wide-ranging reforms to find savings from the health-related benefits bill, including previously mooted plans to scrap the Work Capability Assessment entirely and impose work requirements on incapacity benefit claimants.

This could mean leaving it up to DWP work coaches to decide what requirements sick and disabled claimants must comply with.

The government has also set itself a goal to significantly reduce child poverty over a five-to-ten-year timeframe, with a new strategy in the works.

Our Sick and Tired report concluded that while there are opportunities to support some parents to re-engage with the labour market, this is highly conditional on them getting the support and the flexibility they need to find and sustain work.

Among its many recommendations, we want the government to invest in highly trained specialist advisors in the new Jobs and Careers Service to lead all contact with those out of work due to disability or ill-health, including at periodic voluntary meetings. These specialists would be deeply embedded in local areas and work closely with partners under a more devolved employment support system.

Overall, the government must think very carefully about how it balances its many competing objectives. A drive to find billions in welfare savings will inevitably impact children, compromising the government’s welcome ambitions on child poverty before they’ve even begun.