DWP boss told 'urgent action is needed' to rein in benefits bill by peers

The health benefits system has been labelled as "financially unsustainable" by a Lords committee, prompting calls for ministers to overhaul the system. The chairman of the cross-party Economic Affairs Committee, Lord Bridges of Headley, has penned a letter to Work and Pensions Secretary Liz Kendall, stressing that "urgent action is needed to address the rising social and financial cost".

He further emphasised that "tackling" this issue "must be a top priority for the Government". Last year, Department for Work and Pensions (DWP) boss Kendall made Labour's stance clear, stating that those who "can work, must work", as she unveiled a "get Britain working again" initiative aimed at helping some of the 2.8 million individuals out of work due to long-term sickness return to employment.

Following a brief inquiry into the reasons behind the rise in spending on incapacity and disability benefits since 2013, Lord Bridges expressed in his letter to the DWP boss that the committee found "no convincing evidence" to suggest that the increase in health benefits was attributable to "deteriorating health or high NHS waiting lists". He warned of the risk that people are motivated to claim health-related benefits and that once they start receiving them, they lack both the incentive and support to seek and take up employment.

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Lord Bridges called on the Government to "accelerate its plans to reform health-related benefits" and cautioned that without a clear plan to address the issue, this growing area of welfare spending will continue to pose a challenge for the upcoming Spending Review.

Long-term sickness has been singled out as a major driver in joblessness