Separating Fact From Fiction: 7 Common Myths About People on Benefits

Separating fact from fiction about people on benefits – inclusive illustration of two people using a laptop, surrounded by bold text and colourful abstract design

On March 18th 2025, the Government released its Pathways to Work: Reforming Benefits and Support to Get Britain Working Green Paper consultation. Claimed as a strategy to “get Britain working,” it proposes some of the harshest reforms to the benefits system in recent history—reforms that will disproportionately impact Disabled people and multiply the harms faced by communities already experiencing marginalisation.

In a climate where politicians and the media routinely scapegoat people in poverty, as well as migrants, racialised and disabled people, we’ve broken down some of the most damaging myths about those who rely on benefits, and those who need more support — and why these narratives are not only false, but deeply harmful.

Myth One: “Most people on benefits are unemployed.”

The Truth:

Over 40% of Universal Credit claimants are in work. Many others are actively seeking employment or are unable to work due to illness, disability, or caring responsibilities.

Source: Department for Work and Pensions (DWP)

Myth Two: “People choose benefits as a lifestyle.”

The Truth:

Benefits are typically not enough to live comfortably, let alone thrive. For example, Universal Credit is well below the poverty line, and most people on benefits use it to top up low wages and manage temporary hardship, disabilities and caring roles.

Source: New Economics Foundation.

Myth Three: “Claiming disability benefits is easy or abused.”

The Truth:

Claiming Pip, or ESA, is a lengthy and stressful process. Many people with severe conditions are wrongly denied benefits and must appeal – often successfully.

Around 70% of Pip appeals are successful, showing the system is often flawed, not abused.

Source: Benefits and Work

Myth Four: “Migrants come here to claim benefits.”

The Truth

Migrants including those granted permission to visit, study, work or join family have no recourse to public funds for at least five years. They’re more likely to contribute in taxes than receive benefits.

Studies show that EU and non-EU migrants pay more taxes than they take out on services.

Source: House of Commons

Myth Five: “Benefit fraud is a massive problem.”

The Truth:

The estimated level of fraud across the entire welfare system is around 2.7%, and for disability benefits, it’s lower than that.

Tax evasion and avoidance costs far exceed benefit fraud by tens of billions.

Source: Gov.co.uk and Disability Rights UK

Myth Six: “People just need to budget better.”

The Truth:

No amount of budgeting can make up for a system designed to provide too little to live on, especially when considering the cost of living has risen by 22% in the last four years.. Many benefit claimants already make incredible sacrifices just to cover basics like food, heating, and rent.

Source: House of Commons

Myth Seven: “Universal Credit simplifies things and helps people get into work.”

The Truth:

Universal Credit has been widely criticised for delays, sanctions, deductions, and a five-week wait that pushes people into debt.

It can create disincentives to work when people lose benefits abruptly as earnings increase.

This piece was written by Zoe Daniels.

Zoe Daniels, they/them, is a wearer of many hats. A Brand and Marcomms and Racial Justice consultant for Spark Insights and JMB Consulting, a baddy writer, hopeless romantic poet, community organiser and stand-up comedian when they feel like it. Connect with them on LinkedIn; they would love to meet you!

This guide was developed for Spark & Co. in April 2025. It will next be reviewed in April 2026.

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One response to “Separating Fact From Fiction: 7 Common Myths About People on Benefits”

  1. […] By assuming that disabled people don’t work because they don’t want to, the Government is playing into the age-old narrative that disabled people are lazy. However, this could not be further from the truth. The majority of disabled people on welfare have conditions that render them physically unable to work, or the work environment itself disables them either because there are no measures in place to support psychological and physical safety. We have a separate guide on some of the most common myths of people on benefits here. […]