NHS Waiting Lists Not Driving Increase in Health-Related Benefit Claims

According to a recent study, growing health-related welfare applications are not being caused by longer NHS wait times.

The research conducted by the Institute for Fiscal Studies (IFS) revealed little proof connecting individuals awaiting NHS treatment with an increase in benefit claims. The study suggested that the rising cost of benefits could be attributed to factors unrelated to healthcare wait times.

This follows the announcement of several welfare changes by the government, where Prime Minister Sir Keir Starmer stated: "We've ended up in a worst-case scenario - one that provides incorrect motivations - deterring individuals from seeking employment, leading taxpayers to bear an escalating cost."

Certain specialists suggest that extended wait times for NHS care might be contributing to the increase in welfare applications.

Data indicates that the count of working-age individuals in England receiving disability benefits has climbed by 41%, increasing from 1.9 million in November 2019 to 2.7 million in May 2024. Similarly, the figure for those claiming incapacity benefits also rose by 40% during this timeframe, going up from two million to 2.9 million.

In the meantime, the number of people awaiting planned treatments within the NHS increased by 67%, climbing from 4.6 million to 7.6 million, with typical wait times also seeing an uptick.

In its latest research, the IFS examined NHS wait times across different regions and compared them to the number of individuals receiving disability benefits (designed to increase income for those facing higher costs due to disabilities) and incapacity benefits (provided to people who cannot work because of health issues).

The study determined that "the rise in National Health Service wait times and queues for scheduled hospital care as well as certain types of mental health treatments has not significantly contributed to the substantial growth in the number of working-age individuals receiving health-related assistance."

The research revealed that areas which saw bigger rises in NHS waiting times did not typically undergo greater increases in the number of working-age individuals claiming health-associated benefits.

Actually, a significant portion of the NHS hospital waitlist consists of children and pensioners (44%), leaving the remaining 56% as individuals of working age.

Researchers discovered some "indicative proof" suggesting a link between wait times and applications for disability benefits related to mental health issues; however, this connection didn't stand up when limited to individuals of working age.

A tenuous connection existed between the waitlist for National Health Service (NHS) trauma and orthopedic services and claims for musculoskeletal disabilities benefits; however, this correlation vanished upon examining individuals of working age.

The report stated: "Any impact's scale is minimal: for mental health-related disability benefits, our main estimate indicates that potential NHS wait times might account for about 6-7% of the rise; whereas, for musculoskeletal claims, this figure may be around 7-8%. However, as with all our findings, these figures should be considered carefully."

Data from the Department for Work and Pensions indicates that approximately 41% of individuals receiving benefits due to health issues are awaiting treatment for their conditions, according to the ongoing research. This information still fails to clarify the situation at hand.

The argument was made that those claiming benefits often state multiple reasons besides their health issues that prevent them from obtaining employment. These include the possibility of worsened health conditions due to working, difficulties with transportation, and unpredictable fluctuations in their health status.

The researchers concluded: "Our findings suggest that decreasing waitlists and wait times, although beneficial on their own, would probably not result in a significant decrease in health-related benefit claims. Moreover, additional studies are urgently required to identify the actual drivers behind the rising number of claimants."

The research was supported financially by the Joseph Rowntree Foundation.

Max Warner, a senior research economist at IFS and one of the report’s authors, stated, "Our latest analysis clearly indicates that growing waits for planned hospital treatments within the NHS haven’t significantly contributed to the rise in working-age individuals claiming sickness-related benefits."

The primary reason behind the increase in benefit claims likely stems from another factor.

Lowering hospital wait times is a logical aim for policies, particularly since it would enhance services for NHS patients. However, we can't automatically assume this will lead to a notable decrease in health-related benefit claims. Addressing that issue requires tackling a different set of challenges.

A representative from the government stated: "The present social support structure is flawed, and we are striving to make it more equitable for those who fund public services."

Our changes to health and disability benefits aim to truly help individuals return to employment, while also ensuring the welfare system becomes more financially stable, thus guaranteeing that assistance remains available for those facing the greatest challenges.

Under our decade-long health initiative, we aim to address disparities in healthcare and transition focus towards preventive measures rather than just treating illnesses. This approach will enable us to help a greater number of individuals lead healthier lives for extended periods, irrespective of their origins.

Dr. Layla McCay, who directs policy for the NHS Confederation, indicated that the report may have overlooked some mental health-related data.

She stated, "It's evident that numerous elements can influence individuals' physical and psychological well-being—such as poverty, unstable living conditions, and joblessness. Research shows that poor mental health significantly contributes to increased economic inactivity among young adults. Currently, approximately 1.6 million people require access to mental health services within their communities but won’t be hospitalized or listed for talking therapies."

Addressing lengthy wait times for both physical and mental healthcare benefits not just the patients but also the economy.

This is precisely why our members completely back the government's goals of transitioning from treatment-focused approaches to preventive measures, as well as bringing healthcare services nearer to individuals' residences. System administrators are currently collaborating with various stakeholders to develop an integrated strategy aimed at assisting people in maintaining employment.