Denmark’s Employment Minister Kaare Dybvad asserts a commitment to a welfare regime that mandates work for those able, stating, “Everyone who can work, must work,” reports BritPanorama.
This pragmatic approach sharply contrasts with the UK, where the benefits bill is projected to exceed £334 billion by 2026, highlighting significant differences in welfare ideologies.
Dybvad, representing the centre-left Social Democrats Party, emphasizes the necessity for all adults on benefits, without mental health issues, to engage in work assigned by local authorities — a scheme aimed at fostering responsibility and engagement. “If you’re an adult on benefits and don’t have any mental issues, you need to go to the local government and they will assign some work for you until you get a job,” he stated.
The Danish model includes provisions for individuals to contribute to community services such as cleaning beaches or public buildings, reinforcing a philosophy that underscores personal agency within the social support structure. This exploration of the Danish welfare system comes as UK ministers look to address their own challenges following the adoption of some of Denmark’s immigration policies.
Work as a pathway to self-worth
Currently, 75% of individuals with work-limiting conditions in Denmark are employed, in stark contrast to the UK’s 47%. The EU average stands at 56%, indicating that Denmark’s policies may offer valuable insights for reform.
Dybvad articulates the broader societal benefits of regular work: “If you’ve been out of work for a long time, you also lose some of the daily routines and some of the connection to the labour market.” This statement reflects a growing recognition that re-establishing daily work habits can enhance societal integration.
Sir Charlie Mayfield, former chairman of John Lewis, has recently studied the Danish system, noting the effective support for vulnerable individuals provided by initiatives like Kraftvaerket, a government-owned café in Copenhagen which offers meaningful employment opportunities. There, social worker Karina Toft highlights the transformational impact of work on individuals’ self-esteem, noting, “When our workers go home, they feel they have made a difference.”
Dybvad’s observations also extend to the welfare policies that incentivize employment. He points out that once individuals are off sick for over 30 days, local authorities take responsibility for assisting their return to work, a marked difference from the UK system.
Life is full of setbacks — it is just life, and we have a responsibility to work through them.
Former John Lewis chairman Sir Charlie Mayfield
In Denmark, sickness benefits are generous yet conditional; recipients risk losing support if they fail to engage with available re-employment schemes. This aligns with the country’s approach of “flexicurity,” which grants employers the freedom to hire and fire while ensuring that employees maintain a robust benefits safety net between jobs.
Denmark provides up to 90% of prior salary for a maximum of two years through a voluntary unemployment insurance scheme, capped at 21,092 krone (£2,465) monthly. However, as Mayfield notes, the support becomes limited after this period, promoting a culture of efficiency and responsibility.
Conversely, the UK is grappling with a burgeoning welfare system facing scrutiny and political pressure. As sickness benefits costs balloon, critics argue that the current system effectively discourages return to work. Shadow Chancellor Sir Mel Stride has stated, “The culture of something for nothing must end. We must reward work, not welfare.”
With Britain’s total benefits bill expected to reach £406 billion by 2030, the discussion around reforming welfare is intensifying. Recent legislative efforts, such as the new Employment Rights Bill, have raised concerns among business leaders about exacerbating job market pressures.
Future implications
In the third quarter of 2025, Denmark reported a working-age employment rate of 77%, while the UK lagged at 74.9%. Alarmingly, one in ten working-age individuals in the UK now claims sickness benefits, reflecting serious issues within the employment framework.
The ongoing struggle against rising sickness benefits — which now surpass spending on defence or education — positions the welfare debate as a central theme for the next election, with government officials looking curiously towards the Danish model for solutions.
As politicians and policymakers assess the implications of these welfare structures, Denmark’s experience offers a pragmatic template that could inform a reimagined approach to welfare and employability in the UK.
In the face of growing concerns regarding the sustainability of welfare systems, ongoing dialogues about reform indicate a pivotal moment in the UK’s political landscape. The focus on balancing support with incentivizing work underscores a universal challenge faced by nations prioritizing effective welfare systems.
