The cost of disability benefits and incapacity benefits have risen over time, and are set to reach almost £100 billion by the end of the decade as claimant numbers rise. This puts pressure on the public finances.

But the system is also not working well for disabled people either. Many want to work, but too few are offered help to find work and not enough workplaces offer suitable employment opportunities.

‘The benefit trap’ examines why the number of incapacity benefit claimants has risen and sets out recommendations for a better system.

To help 500,000 more people into work over ten years, the report argues the Government should:

  • Work with employers
  • Improve and decouple financial support
  • Introduce a Benefit Passport
  • Invite people to regular Work Support Conversations
  • Expand employment support

20 January 2026

Labour market dashboard

Every month, Learning and Work Institute produces detailed and timely analysis of the latest labour market statistics from ONS. Explore our interactive charts.

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20 January 2026

Labour Market Briefing: January 2026

Our analysis of the ONS labour market statistics, released on the morning of 20 January 2026.

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20 January 2026

Labour market stats response, January 2026

L&W’s chief executive Stephen Evans responds to the latest labour market data from ONS.

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16 January 2026

From strength to strength: JobsPlus in Toxteth

Reflections from one of our delivery providers for JobsPlus, a new community-led approach to help people find work and boost their earnings. JobsPlus is being piloted on 10 sites across England, following the model’s success in the United States.

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13 January 2026

Labour Market Evidence Programme

The Department for Work and Pensions (DWP) has commissioned the Institute for Employment Studies, in partnership with Learning and Work Institute, to deliver evidence reviews and practical resources on key labour market issues to help inform local policymakers.

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2 January 2026

Getting neighbourhoods working: over 1,000 people take part in community-led employment support

Over 1,000 people have engaged with JobsPlus, a new community-led approach to finding work and increasing earnings which is being piloted across England from Medway to Merseyside following the model’s success in the United States.

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16 December 2025

Labour Market Briefing: December 2025

Our analysis of the ONS labour market statistics, released on the morning of 16 December 2025.

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16 December 2025

Responding to Alan Milburn’s investigation into young people not earning or learning

Sam Avanzo Windett, Deputy Director at Learning and Work Institute, responds to the launch of Alan Milburn’s investigation into young people not earning or learning.

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16 December 2025

Labour market stats response, December 2025

L&W’s chief executive Stephen Evans responds to the latest labour market data from ONS.

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