The Department for Work and Pensions (DWP) is examining the possibility of removing the health element of Universal Credit for claimants under the age of 25, a move that could see £217 per month cut from their payments. This element of Universal Credit, already reduced earlier this year, provides extra financial support for young people with disabilities.
Under the proposed changes discussed by the Labour government led by Andy Burnham, this benefit could be replaced with subsidised employment, alongside targeted back-to-work and mental health support schemes. The proposals aim to address concerns over the increasing welfare expenditure.
The Office for Budget Responsibility projects that spending on DWP benefits will reach £333 billion this year, rising further to £407 billion annually by the end of the decade.
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Mr Burnham, the Member of Parliament for Makerfield, has previously pledged not to introduce harsh cuts to benefits or incapacity payments affecting vulnerable households.
A government source commented, “We will be bringing forward a comprehensive package of support and reform to tackle the scandal of a million young people not in education, employment or training. While details are yet to be finalised, our commitment is to enable work and opportunity while protecting those unable to work.”
Responding to the reports, a DWP spokesperson stated, “We are already implementing changes through the Youth Guarantee, reducing the gap between Universal Credit standard and health rates, restoring face-to-face assessments and investing a record £3.5 billion in employment support for disabled people and those with long-term conditions. We will always ensure a safety net for the most vulnerable and those unable to work.”