Connect with us

News

Britain’s Soaring Sickness Bill Sparks Concerns Over Benefits System

Published

on

Britain’s rising sickness bill, now costing the public purse more than £65.7 billion annually, has raised alarms among policymakers and economists. With nearly 2.8 million people claiming incapacity and disability benefits, the number of workers absent on long-term health grounds has surged far above pre-pandemic levels.

The House of Lords’ economic affairs committee has warned that the problem cannot be solely blamed on deteriorating health or NHS delays. Instead, evidence suggests that the benefits system itself may be contributing to the rise in claimants, with sickness support now surpassing the entire national defence budget.

The increase in mental health conditions and back problems has partly driven this sharp rise. Official data from the Office for National Statistics (ONS) reveals that around 700,000 more people are now out of work due to long-term sickness than in early 2020. Despite the global nature of the pandemic, the UK’s incapacity rate has increased more rapidly than in many other countries.

However, after questioning leading experts, the Lords committee concluded that there is no convincing evidence to suggest that deteriorating health or high NHS waiting lists are the main drivers of the increase in benefits. Government data also shows that overall health in the population has remained relatively stable over the past decade, although concerns persist about stagnant life expectancy and the growing number of people self-reporting as disabled.

Instead, experts are highlighting deeper structural issues within the benefits system. Stephen Evans, from the Learning and Work Institute, pointed out that tightened rules and sanctions for unemployment benefit, combined with a lower weekly payment, are pushing more people toward incapacity benefits, which offer a higher income. Eduin Latimer from the Institute for Fiscal Studies (IFS) agrees, noting that switching from unemployment benefits to incapacity benefits can double a person’s income.

This shift is particularly concerning given the lack of support for those claiming health-related benefits. Once individuals are classified as too ill to work, they typically receive little help from job centres, with less than one in ten claimants receiving job-hunting support. Furthermore, only 1% of those deemed inactive due to illness return to work after six months.

The Lords’ committee expressed concern that once individuals begin receiving health-related benefits, there is little incentive or support to return to the workforce. This lack of guidance not only burdens public finances but also undermines the long-term prospects of individuals who may recover and be able to work again, but never receive the support to do so.

Forecasts suggest that the UK’s long-term sickness bill could exceed £100 billion by 2030, adding pressure on the Prime Minister to address the growing crisis. Experts agree that no single factor is to blame, but the structure of incapacity benefits, along with external shocks like the pandemic, has created a perfect storm. Solutions will likely require reforms to the benefits system, improved mental health support, and better back-to-work programmes that offer real hope for those struggling with illness and financial pressures.

News

Amazon MGM Takes Creative Reins of James Bond Franchise Amid Casting Buzz

Published

on

By

In a landmark shift for the James Bond franchise, Amazon MGM has partnered with long-time producers Michael G. Wilson and Barbara Broccoli to oversee the future of 007. While all three entities retain co-ownership of the Bond intellectual property, Amazon MGM will now lead creative decisions, marking a significant departure from its previously limited role.

The move follows Amazon’s $8.5 billion acquisition of MGM in 2021, which granted it partial ownership but little say in the franchise’s artistic direction. With Daniel Craig’s departure after 2021’s No Time to Die, speculation about the next James Bond has intensified. Jeff Bezos, Amazon’s founder and executive chairman, fueled the debate by asking his followers on social media platform X, “Who’d you pick as the next Bond?” The overwhelming response highlighted British actor Henry Cavill as a fan favorite. Known for roles in Superman, The Witcher, and Mission: Impossible – Fallout, Cavill previously auditioned for the role in 2006’s Casino Royale but lost to Daniel Craig. Director Martin Campbell praised Cavill’s audition but deemed him too young at the time. Now in his early forties, Cavill’s age could be a factor if long-term commitments are considered.

Daniel Craig acknowledged Wilson and Broccoli’s contributions, telling Variety, “My respect, admiration, and love for Barbara and Michael remain constant and undiminished.” With Wilson stepping back and Broccoli expected to reduce her involvement, Amazon MGM gains greater creative control, raising questions about the franchise’s future direction.

Fan speculation continues to swirl around Cavill, alongside other contenders like Taron Egerton, Tom Hardy, and Idris Elba. While Amazon MGM has yet to announce a timeline or reveal casting decisions, industry watchers anticipate a new era that may extend beyond traditional films, potentially including spin-offs, series, and streaming exclusives. As the studio reshapes Bond’s future, audiences worldwide eagerly await the next chapter in the iconic spy saga.

Continue Reading

News

Global Hiring Slump Marks Longest Downturn in Decades, Says Hays CEO

Published

on

By

The global job market is experiencing its longest downturn in over 20 years, according to Dirk Hahn, CEO of Hays, Britain’s largest listed recruitment firm. Hahn attributes the slump to ongoing macroeconomic uncertainty, which is deterring both employers and job seekers from making moves.

Hays, which employs nearly 7,000 consultants worldwide, reported weaker demand for temporary workers in early 2025, while demand for permanent roles—particularly in Europe—remains sluggish following a pre-Christmas dip. Countries such as France, the UK, Ireland, and Germany, Hays’s largest market, are feeling the pressure most acutely.

In the six months leading up to December, Hays reported a 15% drop in group net fees, falling to £496 million from £583.3 million the previous year. Pre-tax profits fell sharply by 67% to £9.1 million, compared to £27.6 million during the same period the prior year. Hays’s share price, already down 25% over the past year, dipped a further 1.8% on Thursday, closing at 71¾p and placing the company’s market value just below £1.2 billion. Despite declining profits, the company will maintain its interim dividend at 0.95p per share.

While the broader UK labor market has shown resilience with limited mass layoffs, businesses remain cautious about expanding their workforce. “Most companies have enough work to retain their current staff, but they’re not looking to increase headcount,” said James Hilton, Hays’s chief financial officer. “Many employees who received pay increases in recent years are not seeking new roles, creating a stalemate. However, over time, people will seek promotions or fresh challenges.”

Recruiters had anticipated a market recovery earlier this year, but Hahn now warns that the rebound may not materialize until 2026. In the meantime, Hays is focusing on its technology recruitment division—its most profitable segment—as it navigates the prolonged global hiring slowdown.

Continue Reading

News

UK Government Reports Lower-Than-Expected Budget Surplus in January

Published

on

By

The UK government reported a budget surplus of £15.4 billion in January, falling short of economists’ forecasts of £21 billion and the £19 billion predicted by the Office for Budget Responsibility (OBR). Despite January typically seeing a boost from self-assessment tax payments, the lower-than-expected figure has increased total borrowing for the financial year to £118.2 billion—over £11 billion more than the previous year.

The government’s debt-to-GDP ratio now stands at 95.3 per cent, a level last observed in the 1960s. With the OBR set to release updated forecasts on March 26, there are concerns that the government may struggle to meet its goal of reducing the debt ratio by 2029. This could lead to potential spending cuts or tax hikes in the autumn budget.

Reduced debt-servicing costs helped boost January’s surplus, dropping from £9 billion in December to £6.5 billion. However, this was partially offset by a £6 billion one-off expense related to the government’s repurchase of military housing from private firm Annington.

Darren Jones, chief secretary to the Treasury, emphasized the government’s commitment to “economic stability and meeting our non-negotiable fiscal rules.” He also noted that a comprehensive spending review—the first of its kind in 17 years—is underway to ensure that public funds are used efficiently and aligned with national priorities.

 

Continue Reading

Trending