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Universal Credit

DWP Universal Credit and PIP Payments Reduced for Under-25 Claimants

The Department for Work and Pensions (DWP) administers benefits such as Universal Credit (UC) and Personal Independence Payment (PIP) at reduced rates for claimants under the age of 25 due to strict eligibility thresholds. Young claimants have expressed concern over the lowered payment amounts, which they say have made financial stability more difficult to maintain.

Under current policy, new claimants aged under 25 receive substantially lower Universal Credit payments than older recipients, with amounts halved from approximately £100 a week to around £50. This reduction has compelled some young people to rely on food banks and other emergency support services, particularly those without additional financial support from family.

In addition, changes planned for 2028 will see the work capability assessment (WCA) scrapped, with eligibility for the health element of Universal Credit instead being determined solely through the Personal Independence Payment assessment. This shift is expected to impact under-25 claimants significantly, who already receive lower standard UC payments.

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James Taylor, director of strategy at the disability equality charity Scope, told the Big Issue:

“Young disabled people are already on a financial knife edge.

The health element of Universal Credit has been halved for new claimants, and this will push disabled people into poverty and force choices between rent, bills, food and other essentials.

Life costs more when you’re disabled. Any further cuts to disability benefits won’t help young disabled people into work.

The government should listen to them and build a welfare system that tackles real barriers, not one that makes life even harder.”

Responding to concerns, a DWP spokesperson said: “We want to see the potential of young people up and down this country fully realised, whether that be through education, training or work.

“We are pushing ahead with the biggest youth employment reforms in a generation to create almost a million opportunities for young people, boosting skills through our Youth Guarantee, backed by a £2.5 billion investment and supporting 300,000 disabled people through our Connect to Work programme to help more people into work.”