London’s Economic Inactivity Crisis: Over 300,000 Residents Too Ill to Work
New figures reveal that more than 300,000 Londoners are now too ill to work, with some boroughs seeing one in ten residents economically inactive due to long-term sickness. According to official UK government data, London’s economic inactivity and the number of people unable to work due to health issues has risen sharply, raising concerns over the sustainability of the welfare system and the wider economy.
Tower Hamlets has the highest rate, with 10.6% of residents unable to work due to health issues, followed closely by Enfield, where the figure stands at 10.8%. Other boroughs, including Hounslow and Barking & Dagenham, report 7% and 8% respectively. With economic inactivity on the rise, concerns are mounting over its impact on productivity and social support systems.
Across the UK, the number of people too sick to work has surpassed three million, with projections suggesting this could climb to 3.62 million by 2030, a staggering 61% increase from pre-pandemic levels. The trend has prompted a major review of the welfare system, with the government announcing a £5 billion reform package aimed at cutting costs and encouraging more people back into work.
Under the new plans, the eligibility criteria for personal independence payments (PIP) will be tightened, and a “right to try” scheme will be introduced, allowing disabled individuals to attempt employment without the immediate risk of losing their benefits. The government argues that the system must be adapted to reduce long-term reliance on welfare, but the proposals have drawn criticism from opposition parties and charities, who warn they could disproportionately impact vulnerable groups.
Labour MPs have voiced strong concerns, arguing that the changes could leave thousands of disabled and chronically ill individuals struggling to make ends meet. Meanwhile, the debate continues over whether the rise in economic inactivity is due to a worsening public health crisis, a lack of support for those with long-term conditions, or barriers preventing people from re-entering the workforce.
With London’s workforce under increasing strain, finding solutions to this crisis is now a priority for policymakers. How best to balance financial sustainability with adequate support remains a pressing challenge, and the coming months will be critical in shaping the future of employment support and welfare policy.
For more updates on London’s workforce and social policy, visit EyeOnLondon. We’d love to hear your views in the comments.
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