The graph below shows spending on incapacity and unemployment as a percentage of GDP for G7 nations in 2005.
| Nation | Incapacity | Unemployed | Combined |
|---|---|---|---|
| Canada | 0.9 | 0.6 | 1.5 |
| France | 1.9 | 1.7 | 3.6 |
| Germany | 1.9 | 1.7 | 3.6 |
| Italy | 1.7 | 0.5 | 2.2 |
| Japan | 0.7 | 0.3 | 1.0 |
| United Kingdom | 2.4 | 0.3 | 2.7 |
| United States | 1.3 | 0.3 | 1.6 |
| OECD | 2.3 |
At 2.4% of GDP, the United Kingdom's spending on incapacity related areas is far higher than all other G7 nations, although equal to the OECD average for developed nations.
But let us measure spending on incapacity against the rate of disability claimants for all OECD nations. We find, as expected a correlation between spending and rate of claimants.
Source: OECD 2005
The UK is found just below the trend line, which means spending is just below average for the rate of disability claimants.
Spending is high, therefore, because of the higher number of disability claimants. As previously explained, the rate of disability claimants are high due to the high rate of mental health sufferers in the UK.
Disability and Mental Health Statistics
If the UK Government wishes to reduce the claimant count fairly it should look to improve the nation's mental health.