Britain dubbed 'sick man of the G7' as disability claims for anxiety hit record high

New research by the Centre for Social Justice (CSJ) found almost 650,000 people were claiming Personal Independence Payments (PIP) for anxiety and mood disorders in July.

It also reported that more than 44,000 people have been handed PIP for mental health since the general election last year - equating to almost 250 people every day.

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The findings led The British Chambers of Commerce (BCC) to say the UK must address its status as the “sick man” of the G7 group of nations if it wants to grow the economy.

The business group is calling for action by the government and businesses to tackle sickness and help people suffering from ill health to get back into work or stay there.

Shevaun Haviland, director general of the BCC said: “Every time I talk to business leaders about the issues they face, I can guarantee within five minutes the conversation will turn to their workforce.

"Whatever the business size, wherever it’s based and whatever it does, they tell me they can’t find the people with the skills they need or are losing ones they have.

"Sickness absenteeism is a growing concern. The UK has more than nine million people who aren’t working with one third of them suffering from long-term health conditions.

"This is a devastating loss of potential – for these individuals, the businesses that need them and our local economies.

"If the Government is serious about growth, then we must turn the tide on this loss of talent. The evidence is also clear that being in work is good for health."

The CSJ's research also found that 60,000 16 to 24-year-olds were receiving PIP for anxiety, depression and mood disorders in July, with an additional 1,407 under 25s awarded the benefit that month.

Almost a million under 25s are not in either in work or training, with over half citing ill-health.

HMRC statistics also show there are 50,000 fewer young people on company payrolls since April alone.

The CSJ has called on ministers to get more young people into jobs before they are ‘locked out of opportunity for decades to come’.

It proposed withdrawing universal credit, health and PIP payments from 1.1 million people with milder anxiety, depression or ADHD to save £7.4 billion by 2029/30.

Other plans included an effective tax cut for employers hiring young people who are not in employment, education or training that it says would get 120,000 under 25s into jobs.

Sir Keir Starmer was set to trim £5 billion off the benefits bill in July but was forced to back track following a major revolt by Labour backbenchers.

The Prime Minister's U-turn came despite the Government’s own forecast predicting that the cost of PIP payments will rise from £21.8 billion to £34.1 billion by 2029, as the number of claimants soar from 3 million to 4.2 million.

Experts say that if changes are no made, the benefits system could collapse entirely.