The Department for Work and Pensions has received a stark instruction to withdraw Universal Credit and Personal Independence Payment from individuals with three specific conditions, as part of proposed welfare reforms.
Substantial Costs for Taxpayers
According to analysis from the Centre for Social Justice, shelved welfare reforms are projected to cost every taxpayer in the UK an additional £700 per year. The think tank warns that the government's decision to rule out identifying savings in the Timms Review will dramatically increase welfare spending, potentially consigning millions to long-term benefit dependency.
Key Recommendations for Reform
The CSJ's proposals include withdrawing UC Health and PIP support from approximately 1.1 million people with milder forms of anxiety, depression or ADHD. For those remaining eligible, awards would be reset to £103 per week.
This measure alone is projected to save £7.4 billion by 2029/30, with at least £1 billion recommended for reinvestment into expanded NHS Talking Therapies, social prescribing initiatives and employment support programmes.
The organisation also proposes introducing a Future Workforce Credit, effectively creating a tax incentive for employers hiring young people not in education, employment or training (NEETs). This would be funded by removing the UC health element for under-22s, potentially helping 120,000 young people into employment while generating £765 million in combined tax and welfare savings.
Additional Proposed Changes
Further recommendations include building a new Work and Health Service, funded by £300 million in savings, which would expand existing WorkWell pilots to assist more people with workplace adjustments. This initiative would also shift responsibility for fit notes away from overstretched GP services.
The CSJ has additionally urged the reinstatement of domestic job advertising rules, requiring employers to advertise positions to UK workers before recruiting through the visa system.
Joe Shalam, Policy Director at the Centre for Social Justice, commented: "Everyone can see the system is failing. Abandoning proper welfare reform while costs surge is a political choice with a £27 billion bill attached."
"That bill lands on every taxpayer, and even worse, a lost generation will be stuck on benefits with no route back to work or independence. It is time for change this Budget."
