Number of university graduates claiming sickness-related benefits has highlighted deepening strains in the UK labour market, official figures reveal.
New data show that the number of graduates out of work and claiming state benefits has surged sharply since 2019, with hundreds of thousands now recorded as unable to work due to health reasons. The increase has triggered concern among policymakers about the future of young workers and the effectiveness of current welfare and education policies.
Analysis by the Centre for Social Justice (CSJ) indicates that the total number of graduates claiming benefits reached around 707,000 in 2025 — a 46 per cent rise since 2019. Of these, approximately 240,000 graduates say they are unable to work because of poor health, more than double the number recorded six years earlier.
A separate report revealed that the number of degree holders in this category climbed from about 117,000 in 2019 to 240,000 in 2025, underscoring a sustained upward trend in health-related benefit claims among graduates.
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Experts say the figures reflect a combination of labour market weak spots, health challenges and skills mismatches. Many graduates in benefit claimant statistics report that chronic conditions, mental health issues or long-term illness prevent them from taking up work, a pattern echoed in broader data showing long-term sickness as a key driver of economic inactivity in the UK.
The rise in benefit claims among graduates contrasts with the long-standing assumption that a university degree guarantees a smoother transition into the workforce. Critics argue that this narrative is being challenged as more degree holders find themselves out of work and reliant on support.
Policy analysts point to gaps in vocational training and changing job market demands as underlying factors. Countries with stronger technical education pathways, such as Germany and the Netherlands, have smaller proportions of youths out of work, suggesting young British graduates may lack alternative skill routes that align with employer needs.
The debate over welfare policy has intensified as these figures emerge. Some commentators have called for reforming how sickness benefits are assessed and linked to employment support, warning that the current system may inadvertently disincentivise labour market re-entry. Others emphasise that many claimants face genuine health restrictions and need sustained support.
The issue forms part of a broader picture of welfare dependency and economic inactivity in the UK. Recent reports show that a significant share of the working-age population is receiving benefits due to sickness or disability, with total claimants in this category rising over recent years.
Charities and think tanks argue that policymakers must balance compassion with strategies that foster inclusion in the workforce. Proposals under discussion include improved access to healthcare-linked employment support, reforms to benefit assessments and stronger incentives for training and vocational pathways.
As the government and stakeholders grapple with the implications of this trend, the debate is expected to shape wider welfare and employment policies in the year ahead.
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