BENEFITS hand-outs beat the wages of six million workers, analysis has revealed.
It means a quarter of those in full-time employment would be financially better off on the dole.
Sir Iain Duncan Smith said it shows Britain is becoming a “welfare state” attached to a “bankrupt country”.
And the Centre for Social Justice think-tank said its damning research exposes a “Why work?” syndrome.
It comes as the annual welfare bill, including pensions, is forecast to rise from £315billion last year to £406billion in 2030.
A surge in claims for health-related issues, such as anxiety and depression, and a post-Covid collapse in the vetting of claimants is blamed for the ballooning bill.
Sir Iain, a former Work and Pensions Secretary, said: “It’s an outrageous state of affairs.
“The system must stop writing off thousands every day.
“Incentives to work need to be restored to end this ruinous waste of human potential.
“Welfare reform is ultimately about transforming lives. The danger now is that Britain turns into a welfare state with a bankrupt country attached.”
Ex-Labour MP Jonathan Ashworth added: “The number of people being abandoned to health-related benefits shows why welfare reform cannot be left on the ‘too difficult’ pile.”
It comes after Labour’s attempt at £5billion worth of welfare cuts was thwarted by left-wing backbenchers.
CSJ researchers found someone on Universal Credit for ill health, average housing benefit and personal independence payment would receive around £25,200 — equivalent to a pre-tax salary of £30,100.
That is £3,400 more than the post-tax wage of a worker on 40 hours on the National Living Wage at £21,800.
And it is £4,800 more than someone on the National Living Wage working the average 37 hours per week at £20,400.
Government sources stressed they were working hard to undo the Covid effect and get people back into work.
The Department for Work and Pensions said: “We are glad this report confirms that the vast majority of people are better off in work.”
But since the 2020 pandemic, 1,000 people every working day are being signed on to disability benefits.
