A coalition of 40 prominent charities has issued a strong warning to the government led by Andy Burnham regarding potential cuts to Universal Credit health-related benefits for claimants born after 2004. In a joint letter addressed to Labour Party members and particularly Department for Work and Pensions (DWP) Secretary Pat McFadden, these organisations call for a progressive approach to reforming the welfare system that protects young people from falling into poverty.
The letter comes as the government anticipates the final recommendations of the Milburn Review, commissioned under the previous Sir Keir Starmer administration to tackle the crisis of young people not in education, employment, or training (NEET). The review aims to provide guidance on improving support mechanisms for this vulnerable demographic.
Among the signatories are well-known groups such as Action for Children, Shelter, Trussell Trust, and Scope. The charities express appreciation for the government’s acknowledgement that blunt cuts to social security benefits are counterproductive and advocate that reforms must prioritise support and opportunity rather than punitive measures of the past.
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A particular concern highlighted is the possible reconsideration of cuts to the Limited Capability for Work and Work-Related Activity (LCWRA) component of Universal Credit health support, a policy initially proposed in September 2024. Scope’s research indicates that 94% of households with a young claimant under 22 who receive this health top-up would live in poverty if the benefit were removed. Currently, 49% of such households are already below the poverty line, and removing entitlement would push an additional 45% into poverty.
The charity coalition emphasises that these young claimants often face severe and complex challenges, including multiple physical and mental health conditions, poverty, homelessness, and childhood trauma. For those cared for at home, the health element provides essential income to support living costs and care arrangements. Similarly, young people living independently or in supported housing rely on this support to meet basic needs.
Furthermore, many young claimants are engaged in education, and the removal of this income could jeopardise their ability to continue participating in educational programmes. The charities call for reforms to safeguard the wellbeing and future prospects of these vulnerable young people through compassionate and effective social security policies.