The Department for Work and Pensions (DWP) is reportedly considering removing the health element of Universal Credit (UC) for disabled young people under the age of 22, as part of a significant review of welfare provisions. This potential change comes amid growing worries over the increasing welfare bill.
The government is currently awaiting the outcomes of two key reviews: the Timms Review, which focuses on Personal Independence Payment (PIP), and the Milburn Review, which examines Universal Credit more broadly. Despite ongoing consultations, Sir Stephen Timms, the DWP minister co-chairing the Timms Review, has indicated that cutting the UC health element could be on the agenda, as suggested in a government green paper exploring the proposal.
A recent Pathways to Work report from the DWP mentioned the possibility of delaying access to the Universal Credit health element until claimants reach age 22. Action for Work raised concerns over this proposal, estimating that it could reduce the annual income of nearly 110,000 disabled young adults aged 16 to 21 by approximately £5,000.
READ MORE: Andy Burnham Confirms £240 Annual Charge for Drivers of Popular Electric Vehicles
READ MORE: Pressure on Andy Burnham over state pension increase and social care funding
In a parliamentary statement in April, Sir Stephen Timms highlighted the rise in young people not engaged in work, education, or training as a pressing issue. He suggested that enhanced support might be more beneficial than increased financial assistance. Timms also noted that the Milburn Review, which addresses the broader problem of youth disengagement, is expected to report in September. Decisions regarding the potential delay of UC health element access until age 22 would be made following this report, with provisions for certain exceptions if the policy were implemented.
“There is an urgent need to address the big rise in the number of young people not in work, education or training that took place before the last general election. We think that better support might help young people more than extra cash,” said Sir Stephen Timms.
Any announcement on this matter could come as soon as September and would likely be delivered by Sir Stephen Timms alongside DWP Secretary Pat McFadden, who was recently reappointed by the Labour government during the first Cabinet reshuffle.
Advice Now has indicated further clarity on which proposals will move forward is expected with the publication of the forthcoming White Paper, potentially in early autumn 2025. It is anticipated that any measures emerging from the Timms Review or the Pathways to Work White Paper would require separate parliamentary legislation before being enacted.