Skip to content
CityAM
Main navigation
  • News
    • News
      • Latest Business News
      • Economics
      • Politics
      • Tech
      • Banking
      • FTSE 100 Live
      • Retail
      • Insurance
      • Legal
      • Property
      • Transport
      • Markets
    • From our partners
      • AON
      • Bayes Business School
      • Canada BIDs
      • Central London Alliance CIC
      • Destination City
      • Halkin
      • Olympia
      • Inside Saudi
      • Tottenham Hotspur Stadium
      • Santander X
      • YEAR SIX Dividend
    • Featured

      Why Williams sisters return to SW19 is a win for Wimbledon brand

      Business professionals in a modern office discussing strategy with digital charts displayed on a large screen in the backg...

      Submit a story

      Tell us your story.

      Submit
  • Opinion
  • Sport
    • Latest Sports News
      • Sport
      • Sport Business
    • From our partners
      • The Morning Briefing: SBS x CityAM
      • Aramco Team Series
      • LIV Golf
    • Featured

      Why Williams sisters return to SW19 is a win for Wimbledon brand

      Business professionals in a modern office discussing strategy with digital charts displayed on a large screen in the backg...

      Submit a story

      Tell us your story.

      Submit
  • Life&Style
    • Life&Style
      • Life&Style
      • Toast the City Awards
      • The Magazine
      • Travel
      • Culture
      • Motoring
      • Wellness
      • The RED BULLETiN
      • Do it with Shared Ownership
      • Media Speak Hub
    • Featured

      This Peugeot 205 GTI is the car you remember from your teenage years

      Vintage Peugeot 205 driving on a scenic road, showcasing classic design and compact size for a news feature on iconic cars

      Submit a story

      Tell us your story.

      Submit
  • Investec
  • Events
  • Latest Paper
Thursday 10 July 2025 8:12 am  |  Updated:  Thursday 24 July 2025 7:44 am

Benefits claimants take home more than minimum wage workers

By: Matt Kenyon

Digital Editor

Add as a preferred source on Google
The think tank found that inactive claimants can still end up receiving thousands. (Photo by Carl Court/Getty Images)
The think tank found that inactive claimants can still end up receiving thousands. (Photo by Carl Court/Getty Images)

Brits claiming sickness benefits can be paid up to £25,000, which is more than the take home pay of a minimum wage worker.

That’s according to new research from the Centre for Social Justice (CSJ), which found that if a claimant is receiving universal credit incapacity benefits alongside personal independence payments and housing benefits, the total would add up to more than the national living wage. 

The think tank found that sickness benefits claims are tipping above 3,000 people a day, and that inactive claimants can still end up receiving thousands. 

Around 2m employees in the UK earn a minimum wage take home pay of £22,500. 

This comes as 47 Labour MPs rebelled against the government on Wednesday evening to vote against the welfare bill – despite further concessions from Starmer to the soft-left of his party.

The CSJ’s policy director, Joe Shalam, credited Labour ministers with “tackling the perverse incentives that have crept into the welfare system since Covid”. 

He added: “Too many people are trapped in a cycle of dependency and wasted potential.” 

“By tightening eligibility for mental health benefits and investing in therapy and employment support, ministers can save public money and transform lives. The Timms Review must be brought forward to Autumn, there is no time to lose.”

Read more

Starmer ally defends minimum wage quango after Sunak calls for it to be axed

Labour's Pat McFadden could oversee small welfare reforms that could make reasonable savings for public finances.

This language echoes the disability minister Sir Stephen Timms, who said that reform is crucial to undo the “severe work disincentives in universal credit”. 

Kemi hits out at benefits claimants

Kemi Badenoch is set to give a speech hosted by the CSJ early this afternoon, where she is expected to slam the “ticking time bomb” of the UK welfare state. 

The Conservative leader will describe Britain as “a welfare state with an economy attached”. 

And in one of her relatively few major interventions on policy of her leadership so far, Badenoch is set to call for sickness benefits to only be available for “more serious conditions”. 

Badenoch will paint the government as “beholden to left wing MPs” and criticise the current state of welfare spending as “not fair” on working people. 

“It is not fair to spend £1 billion a month on benefits for foreign nationals and on handing out taxpayer-funded cars for conditions like constipation.”

In a wedge with Labour and Reform, the Tories are pushing to keep the two-child benefit cap – a policy introduced by the previous government, and initially given reluctant support by Starmer before support was dropped. 

Read more

Tories target £1bn benefits loophole in welfare crackdown

Conservative Party leader Kemi Badenoch is preferred as Prime Minister to Keir Starmer. Photo: PA

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • News

Categories

  • Politics

People & Organisations

  • Centre for Social Justice
  • Conservatives
  • disability benefits
  • Keir Starmer
  • Kemi Badenoch
  • Labour
  • Labour Party
  • Rachel Reeves
  • Reform
  • UK economy
  • UK Government
  • Welfare
  • welfare bill

Trending Articles

  • More Big Four blues as Deloitte plans to slash UK audit roles

  • Rathbones to suspend thousands of client account inflows after FCA probe deals £530m blow

  • FTSE 100 Live: Stocks sink further as interest rates held; Oil falls as ‘economic catastrophe’ avoided

  • Rolls-Royce shares surge as SMR unit bags multi-billion pound Swedish nuclear contract

  • Baillie Gifford in line for Anthropic windfall just months after £3.6bn SpaceX bonanza

More from CityAM

  • Starmer ally defends minimum wage quango after Sunak calls for it to be axed

    Economics
    Labour's Pat McFadden could oversee small welfare reforms that could make reasonable savings for public finances.
  • Tories target £1bn benefits loophole in welfare crackdown

    Politics
    Conservative Party leader Kemi Badenoch is preferred as Prime Minister to Keir Starmer. Photo: PA
  • The Debate: Is Britain’s minimum wage too high?

    Opinion
    Hospitality workers gathered at a restaurant discussing minimum wage policy changes, highlighting industry challenges.
  • Sunak calls for minimum wage quango to be abolished

    Politics
    Prime Minister Rishi Sunak tours the car manufacturer Nissan on November 24, 2023 in Sunderland, England. (Photo by Ian Forsyth/Getty Images)
  • Next faces shareholder pressure over worker pay

    Retail
    Profit at Next rise 13.8 per cent in the first six months of the year
  • Milburn review: Youth unemployment crisis costs £125bn a year due to ‘broken system’

    Economics
    Alan Milburn speaking at a business conference, wearing a suit and tie, discussing economic strategies and policies
  • Debt-saddled grads ‘risk earning less than minimum wage’ five years after leaving uni

    Education
    University graduation
  • Hollywood Bowl boss: ‘Incredibly painful’ tax hikes make it harder to hire

    Retail
    Scenic view of Hollywood Bowl amphitheater with a large crowd gathering for a live performance under a clear evening sky

CityAM Canada — business, markets and opinion for Canadian readers.

Sections

  • Business
  • Markets
  • Tech
  • AI
  • Economics
  • Opinion
  • Cities

Company

  • About
  • Contact

Legal

  • Terms of Use
  • Privacy Policy
  • Cookie Policy
© 2026 CityAM Canada. All rights reserved.
Terms · Privacy · Cookies