Leading charities have written to the Department for Work and Pensions (DWP) urging the government to abandon any plans to restrict health-related Universal Credit for claimants born after 2004, warning that such a move could push many young people into poverty.
In a joint letter to DWP Secretary Pat McFadden, 40 charities, including Action for Children, Shelter, Trussell and Scope, have demanded a “progressive approach to reform” of the social security system. The letter comes as Prime Minister Andy Burnham’s government awaits the final recommendations from Alan Milburn’s review into the NEET (not in education, employment or training) crisis.
Charities call for support over punishment
The charities say they welcome the government’s commitment to tackling the growing number of young people who are NEET through a fair and sustainable approach. They also note the Prime Minister’s recognition that “crude cuts to benefit levels are not the answer to reducing social security spending.”
While change “is needed,” the letter argues, it “must be built around the principles of support and opportunity, rather than the failed punitive approaches of the past.” The charities are concerned that a plan from September 2024 to cut the Limited Capability for Work and Work-Related Activity (LCWRA) category could be revisited.
Poverty statistics highlight risk
Scope’s analysis shows that 94 per cent of households with a young person under 22 born after 2004 claiming the UC health element would be in poverty if the support were removed. Currently, 49 per cent of such households are already in poverty, and removing the entitlement would push a further 45 per cent below the poverty line.
The charities emphasise that these are young people with severe and complex needs, often living with multiple physical and mental health conditions and overlapping disadvantages including poverty, homelessness and childhood trauma. For those cared for at home, the health top-up provides essential family income to meet living costs and support care arrangements. Others living independently or in supported accommodation depend on it to meet basic costs.
Education participation at risk
The letter also highlights that significant numbers of these young people are engaged in education, and any loss of income would undermine their ability to sustain that participation. The charities urge the government to adopt a reform approach that prioritises support and opportunity, rather than punitive measures that could worsen poverty among the most vulnerable.
