Britain Is Now The 'Sick Man Of G7' As Anxiety Levels Among Brits Soar – Here Are The Alarming Numbers

Britain has been dubbed the 'sick man of the G7' as record numbers of people turn to disability benefits for anxiety and mood disorders. The label reflects mounting concern about the pressures on the workforce and the sustainability of the welfare system.

Figures from the Centre for Social Justice (CSJ) show that nearly 650,000 people are now claiming Personal Independence Payments (PIP) for mental health conditions, with thousands more joining each month. The rise illustrates both growing demand for support and the financial strain placed on public services.

Business groups and policy analysts warn that long-term sickness and economic inactivity could damage productivity further, leaving the UK lagging behind its peers in workforce participation.

Record Mental Health Claims

According to the CSJ, about 633,000 people were claiming PIP for anxiety and mood disorders in July 2025, the highest level to date. More than 44,000 new claims have been approved since the general election, averaging 250 people each day.

The increase has been most marked among young people. Around 60,000 people aged 16 to 24 are now receiving PIP for conditions including anxiety and depression. In July alone, more than 1,400 under-25s were newly approved. Almost a million young people are currently classed as not in education, employment or training (NEET), with more than half citing health problems as the main barrier.

Business Leaders Raise Alarm

The British Chambers of Commerce (BCC) has voiced concern that long-term illness is constraining economic recovery.

Shevaun Haviland, the BCC's director general, said employers across sectors are struggling to recruit and retain staff. 'The UK has more than nine million people who are not working, with one third of them suffering from long-term health conditions. This is a devastating loss of potential for individuals, businesses and local economies.'

The BCC has urged the government to act quickly, warning that unless sickness is addressed, the UK risks entrenching its position as the least productive economy in the G7.

Rising Costs and Political Debate

The CSJ report warns that the cost of disability benefits could overwhelm the welfare system. Official forecasts suggest that PIP spending may rise from £21.8 billion in 2025 to £34.1 billion by 2029, with claimant numbers expected to increase from 3 million to 4.2 million.

Earlier this year, Prime Minister Keir Starmer sought to cut £5 billion from the benefits bill but was forced into a retreat after opposition from Labour backbenchers. The row exposed divisions within the party over how to balance support for vulnerable groups with fiscal discipline.

Controversial Proposals

Among its proposals, the CSJ has suggested withdrawing PIP and other benefits from about 1.1 million people with milder conditions such as anxiety, depression or ADHD, claiming this could save £7.4 billion by 2030. It also called for tax incentives for employers who hire young people currently out of work or training.

Disability rights organisations have criticised these ideas, arguing that they would unfairly penalise people whose conditions prevent them from working. They warn that cutting support risks increasing poverty and worsening health inequalities.

Economic and Social Implications

Experts warn that Britain's worsening mental health crisis is creating both a healthcare challenge and an economic strain. The growing number of people unable to work risks exacerbating labour shortages and putting pressure on growth.

Analysts say the issue cannot be addressed by welfare policy alone, as the underlying problem is tied to treatment gaps and delayed support. Reforms, they argue, must prioritise early intervention, better access to mental health services and stronger programmes to help people re-enter the workforce.

Without these measures, the UK risks a cycle of illness, long-term unemployment and dependency on benefits. For now, the latest figures highlight the scale of health-related economic inactivity and the far-reaching consequences it poses for the country.