Keir Starmer must do one thing urgently to cut sickness benefit claims

Britain is splurging more on sickness and disability benefits than it spends on defence, a shocking report has revealed.

Sir is facing calls to urgently slash the “financially unsustainable” health benefits system, with peers insisting it must be a “top priority”.

They warned that assessments for the payments are not tough enough and must be urgently reformed, with face to face appointments essential.

The Government is handing out almost £65 billion on incapacity and disability benefits, compared to the Ministry of Defence’s £56.9 billion budget.

The House of Lords Economic Affairs Committee said around 3.7 million people of working age receive health-related benefits – 1.2 million more than in February 2020.

Peers said the Government could save £10 billion – by raking in extra taxes and lowering benefit spending – if 400,000 people on sickness benefits returned to work.

Lord Bridges of Headley, Chair of the House of Lords Economic Affairs Committee, said: “The health benefits system is financially unsustainable, wastes human potential and – in the words of the Employment Minister – ‘does not work for anybody’.

“Given the pressure on the nation’s finances, tackling this must be a top priority for the Government.

“Urgent action is needed to reform both the unemployment and health-related benefits system, and how they interact. There should be more support to help those who are able to find and accept work – and to ensure that those who cannot work for a period are not abandoned to a life on benefits.

“Without a clear plan of action, growing welfare spending will remain a significant challenge for the forthcoming Spending Review.”

The committee said the Work Capability Assessment is “not rigorous enough and susceptible to error”.

They added: “The lower level of conditionality attached to health-related benefits creates an incentive to apply for these benefits.

“The Government is right to plan to reform the WCA. The assessment should be face-to-face and seek to establish what work an individual can do rather than looking to corroborate what they cannot do.”

Those signed off sick for more than a month should also face “additional or ongoing assessments”, the Lords said.

The peers concluded: “We should have a system in which those who receive health-related benefits are proactively helped to overcome obstacles rather than remain on benefits and out of work indefinitely.

“The committee urges the Government to consider providing enhanced support, prioritising those claimants where the returns and rewards for getting back into the labour force are high – for example, young people.

“The Committee recommends that, just as unemployed people have a work coach, so should those on incapacity benefit for the first two years of their period on benefits.

“Each caseworker’s aim would be to help the claimant overcome obstacles, both in terms of health and employment, and get back to work.”

The Department for Work and Pensions on Sunday announced new plans that will see benefit fraudsters having money taken directly from their bank accounts.

Work and Pensions Secretary Liz Kendall has said that legislation will “make sure” that people who “seek to cheat” the system are held accountable.

The powers will be used as a last resort, the Government says, and will allow the ability to recover debt from people who have the means but have refused to pay money back.

Secretary of State for Work and Pensions Liz Kendall, said: “This Government will not tolerate fraud and waste in the welfare system as we make it fit for the 21st century as part of our plan for change.

“The public expects this of us, and we are delivering for them.

“People who seek to cheat the system should know, our new powers will help us to catch you out and make sure you are held accountable.

“We will also introduce new powers to minimise overpayments to benefit claimants so that hardworking families up and down the country know their money is being protected.”