‘Poor maths skills’ blamed for rising benefits bill, says Santander UK boss

William Vereker, UK head of Santander Bank and a former business envoy under Theresa May, attributed Britain’s high benefits bill and long-term unemployed to poor numeracy and poor understanding of financial basics.

Speaking against the backdrop of the rapidly rising sickness benefit budget, Vereker warned that many people ignore the long-term career gains of work simply because the immediate increase in income seems marginal compared to the benefits.

“One of the challenges of unemployment is that people look at the benefits and the job they can get and think: ‘I’m only earning an extra £5 or £10 a week – why bother?’ But, of course, the reason is because you’ll be earning more the following year,” Vereker said. Then more again you will create an opportunity for yourself.”

He criticized the lack of practical financial education in UK schools, arguing that this lack leaves many young people ill-equipped to value the benefits of steady work. Rather than viewing a low-paying job as a stepping stone, he noted, those with minimal financial literacy often find little incentive to give up the security of state aid.

The comments come as Labor leader Sir Keir Starmer and Chancellor Rachel Reeves seek to reduce Britain’s high sick benefits and the number of working-age adults who are economically inactive, which stands at more than one in five. Critics say generous welfare payments encourage dependency. The Center for Social Justice recently found that annual sickness benefits can exceed income from a minimum wage job by £3,000.

Claims for long-term illness have risen by about 650,000 claims since the pandemic, rising to 2.8 million, as a study conducted by the Boston Consulting Group indicates that tens of thousands of young people are receiving unemployment benefits directly from education. Ministers have unveiled initiatives ranging from job center reforms to a “youth guarantee” and withdrawing benefits from those who refuse to work or train, but detailed measures to rein in sickness benefits remain on hold until next year.

Former Home Secretary David Blunkett, now a member of the Labor Party, has indicated his strong position on the issue, saying: “We have an obligation to help people. We have no obligation to help people if they are not prepared to help themselves.”