Free luxury cars: the giant fraud in impoverished Britain
A Wall Street Journal investigation reveals that disability benefits in Britain have become a widespread economic support tool, with unprecedented government spending of over £100 billion per year. The financial incentive to stay out of the workforce is sometimes more lucrative than minimum wage, and attempts to curb spending face political difficulties.
A Wall Street Journal investigation uncovers a massive fraud in Britain, where disability benefits have transformed from a safety net for the needy into a broad economic support tool. Britain is expected to spend over £100 billion (about $132 billion) this year on sickness and disability benefits, an amount roughly a third higher than its defense budget. A significant portion of new claims is based on mental health issues such as depression, anxiety, and ADHD, which are harder to verify. The financial incentive to remain outside the workforce is sometimes more attractive: a young person outside London deemed unfit for work can receive about £2,000 tax-free per month, compared to £1,880 net for a minimum wage worker. The rate of British youth not in education or employment is among the highest in Europe. The crisis is paralyzing the political system: former Prime Minister Keir Starmer attempted to tighten eligibility criteria but backed down due to public and political backlash, leading to a mass sell-off of government bonds and a currency plunge.