The Department for Work and Pensions (DWP) is considering scrapping the health element of Universal Credit for under-25s, a change that would remove £217 a month from claimants, under Labour government plans led by Andy Burnham.
The Labour Party government is examining the abolition of the disability benefit for young people, replacing it with subsidised work opportunities. The rate, worth £217 a month for under-25s, was halved earlier this year. As a compensatory measure, the DWP would offer claimants subsidised jobs, places on targeted back-to-work support programmes, and targeted mental-health support.
Welfare bill concerns drive reform
The move comes amid concerns over the ballooning welfare bill. The Office for Budget Responsibility expects the DWP bill, which continues to rise sharply, to total £333 billion this year. By the end of the decade, the annual cost of benefits is projected to climb to £407 billion.
Burnham, the Makerfield MP, has previously promised to rule out "crude" cuts to benefits and incapacity payments for hard-up households. The proposal to scrap the health element for under-25s would represent a significant shift in policy, targeting younger claimants specifically.
Government source outlines package
Speaking on Thursday night, a government source told The Guardian: "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." The insider added: "The details are yet to be decided, but we are committed to enabling work and opportunity, while always protecting those unable to work."
DWP response and existing measures
A Department for Work and Pensions spokesperson responded to the claims in the national newspaper. Issuing a reply, a DWP representative said: "We are already changing the system through the Youth Guarantee, narrowing 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 there is a safety net for the most vulnerable and those who are unable to work," the spokesperson added. The final decision on the proposal has not been confirmed, and details remain under discussion, according to the government source.
