This did catch me offguard after a rough night but it certainly deserves at least reading through. It's today's TPA newsletter.
Welfare Hotspots
We kicked things off on Monday with the news that 2.4 million working age Brits (6.5 per cent) were, as of March 2026, receiving universal credit (UC) with no requirement to work, entitling them to an additional UC payment worth up to £429.80 per month, on top of any other benefits they receive.
In 25 council areas, at least one in ten working age adults hold limited capability for work and work-related activity (LCWRA) status. Blackpool had the highest proportion of their population with LCWRA at 14.1 per cent, compared to an average of 8.3 per cent across the North West.
Our findings showed a big regional divide with Wales, the North East, and North West making up 9 of the top 10 local authorities with the highest rates of LCWRA. By contrast, 8 out of the 10 council areas with the lowest rates are in the South East.
Particularly alarming was that 804,476 people in their 20s and 30s were holding LCWRA status, 4.2 per cent and 5.5 per cent respectively. Indeed, in seven local authorities, the share of 20 to 29 year olds on LCWRA was higher than 60 to 64 year olds, places like West Devon, North Norfolk, Monmouthshire, and Wealden. Check out the full briefing paper here.
As John O’Connell told the Sun: “These welfare hotspots underline just how severe Britain’s benefits crisis has become. The health element of universal credit is supposed to be for special cases, but now it means millions of working age people are given extra money to sit at home without any requirement to look for work.”
One-in-Five Receiving UC
Of course this was just the tip of the iceberg. On Tuesday, we revealed that one-in-five working age people are now claiming universal credit.
Of those aged between 20 and 64 in England and Wales, 20.3 per cent were receiving universal credit as of May 2026. Again, there were particularly worrying figures for younger age groups as 1.3 million (17 per cent) of those in their 20s and 2 million (23 per cent) in their 30s claimed UC. Together this was 3.3 million people under the age of 40.
Among those in their 20s, claims for UC reached 33.9 per cent in Blackpool followed by Thanet at 31.6 per cent, and Great Yarmouth and Hartlepool at 30.8 per cent. The picture was even bleaker for those in their 30s as it hit 40.6 per cent in Blackpool, 38.4 per cent in Great Yarmouth, and 38 per cent in Hartlepool. At the other end of the spectrum, council areas in London occupied 8 out of the top ten spots for claims among people aged 60 to 64, with 51 per cent in Tower Hamlets.
In 15 council areas, at least 30 per cent of the working age population received UC while in 54 local authorities, the figures showed that a quarter are claiming. Blackpool topped this list too with 35.2 per cent in receipt in May 2026.
Speaking to journalists, William Yarwood said: “In some places, dependency on universal credit has become endemic. Generations are being dumped on benefits: written off and condemned to a life of dependency as ministers make it harder for them to find a job. If Andy Burnham was serious about growth in every postcode, he would be making it more affordable to hire young people.” Soon enough he followed up on Talk explaining to Julia Hartley-Brewer which you can watch here.
While some of those who are receiving universal credit are in work, having 20 per cent of the population reliant on benefits is clearly unsustainable.
Young People PIP Surge in Home Counties
Universal credit claims are just part of the problem.
On Wednesday, more headline-setting analysis from the TPA wonks found a 17.1 per cent increase in working age personal independence payment (PIP) claims between April 2024 and April 2026, with the largest percentage increases among younger claimants.
The number of 16 to 19-year-olds receiving PIP rose by 22.8 per cent, equivalent to an additional 37,957 claimants, while the number in their twenties increased by 23.6 per cent, or 87,919, the highest rate amongst working age groups. Nigel Farage’s Clacton constituency had the highest proportion of 16 to 19 year olds at 16.3 per cent, while 6 of the top 10 are found in the North West, including Liverpool Walton (15.6 per cent), Wallasey (15.5 per cent), Birkenhead (14.9 per cent), and Bootle (14.8 per cent). For those in their 20s, Isle of Wight East had the highest proportion at 13.4 per cent.
Four of the ten constituencies recording the fastest increases for 16 to 19 year olds were in the South East, despite enjoying some of the strongest educational, earnings and employment prospects in Britain. Another three could be found in the East of England. Kemi Badenoch’s North West Essex came out top (54.7 per cent), along with places like Sussex Weald (54.4 per cent), Chichester (51.2 per cent), and Canterbury (50.8 per cent). See the full findings here.
Shimeon Lee was absolutely right when he spoke to the Daily Mail, questioning whether we’re really witnessing such a substantial deterioration in health or if the criteria for claiming PIP, changes in diagnosis, and the benefits system itself are driving younger people in affluent areas to claim state support: “The explosion of PIP claims in leafy parts of the Home Counties begs the question of whether there are people with sharp elbows gaming the system. Ministers must urgently review eligibility for PIP, ensure support only goes to those truly in need by means-testing, and ease the burden on hard-working taxpayers.”
What’s being claimed for?
A key issue here is what people are being able to claim for. Diving into the data, the TPA team uncovered a massive explosion in claims for autism, mixed anxiety and depressive disorder (MADD), and ADHD. Across parliamentary constituencies in England and Wales, PIP claims for MADD increased by an average of 108.5 per cent between April 2021 and April 2026, while autism claims rose by 136.6 per cent.
Overall, psychiatric disorders accounted for an average of 39 per cent of PIP claims across constituencies, rising to 51.7 per cent in Bristol Central. ADHD, autism and MADD together accounted for more than half of all PIP claims attributed to psychiatric conditions.
Alongside the rise in psychiatric disorders, we found 52,210 are now getting PIP for non-specific back pain, where no specific underlying cause has been identified making symptoms harder to verify independently. The number of claimants with non-specific back pain as their main disabling condition increased by 58.9 per cent in five years.
London had the highest rate in England and Wales, with 2.2 per cent of PIP claimants, or 10,966, compared with 1.3 per cent nationally. Indeed, all ten constituencies with the highest rates were in London. Queen’s Park and Maida Vale topped the table at 4.2 per cent, more than three times the England and Wales average.
Perhaps most shockingly, areas with the greatest concentrations of physically demanding employment actually had lower rates of non-specific back pain claims. Among the quarter of constituencies with the lowest levels of manual and industrial employment, non-specific back pain accounted for 1.55 per cent of PIP claimants compared to 1.17 per cent with the highest.
Anne Strickland was bang on in her assessment that the findings should “set alarm bells ringing about how easily hard-to-verify conditions can qualify for Pip. When claims are highest in areas with the least manual and industrial work, taxpayers are entitled to ask whether the system is being gamed.”
Taking to Talk, John told listeners: “The concerning thing is actually the growth since 2021… it is that rise that’s giving people a sense of ‘hang on, are we really on top of this? Are we really making sure that the eligibility criteria are stringent enough to make sure that people aren’t gaming the system?’”
A nation of taxpayers
Of course, there was only one topic of conversation for this week’s episode of a nation of taxpayers. Shimeon and William joined Duncan Barkes in the TPA studio to discuss the growing cost of Britain’s welfare state, examining the rise in working-age benefit claims, the sharp growth in PIP claims linked to mental health conditions, the parts of the country where dependency is most concentrated, and what these trends mean for taxpayers.
Catch the latest episode of a nation of taxpayers on Apple Podcasts and Spotify, or watch now on YouTube.
Not forgetting the cars
Rounding off the week, yesterday we revealed the shocking 79.9 per cent average rise in enhanced mobility PIP claims, giving those who qualify access to the Motability scheme. Over 2 million people.
In case you were wondering, the Motability scheme allows the extra benefit to be exchanged for a far more generous package including a new car on a rolling three year lease, multiple driver insurance, breakdown cover, servicing & MOT, a home charging point for electric vehicles, and an exemption from vehicle excise duty.
And now for something completely different
This week’s blog comes to us from former TPA chairman and ex-treasury economist, Mike Denham. Mike takes a look at recent productivity data from the Office for National Statistics and whether it means good news for taxpayers. Spoiler: not likely.
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JH: Phew, I was not expecting that much in the TPA newsletter but obviously we must run it … going to put it at OoL and Jstack as well, plus hopefully Julia will link to it later on X. Hoping that makes up for reprinting 90% of today’s newsletter.






