Incapacity benefits

The number of people claiming sickness and disability benefits hit a record 3.1 million in the second quarter of this year, casting doubt on the government's attempts to reduce the numbers, according to official data released on Thursday.

The number of sickness claimants is now nearly double the number on unemployment and lone parent benefits, both of which have declined to 797,000 and 788,000 people respectively.

Stakeholder Response: Institute of Directors

Geraint Day, health policy adviser at the Institute of Directors, said: "This is a big problem area. The rise in an already large number of people of working age who are claiming is worrying.

"Certainly some new thinking is needed to encourage better use of the nation's skills and talents.

"One large area of concern historically has been parts of the public sector, where, seemingly, many employees have been able to take ill-health retirement. Apart from loss of skills and of the self-esteem that can go with employment, there are often ongoing costs on the public purse."

Stakeholder Response: Leonard Cheshire