The Department for Work and Pensions may scrap the health element of Universal Credit for young disabled people under the age of 22 under a proposed shake-up of the welfare system. The change, hinted at by DWP minister Sir Stephen Timms, is being considered amid concerns over the rising cost of the welfare bill.
The government is awaiting the return of two major reviews: the Timms Review, which is examining Personal Independence Payment, and the Milburn Review, which is analysing Universal Credit. According to a green paper and a Pathways to Work report, the DWP is mulling over delaying access to the Universal Credit health element until the age of 22.
Impact on Young Disabled Claimants
If implemented, the cut would affect nearly 110,000 disabled young adults aged 16 to 21, reducing their income by up to £5,000 per year, according to estimates from Action for Work. The charity described the proposal as "very concerning" and warned of the severe financial impact on vulnerable individuals.
Sir Stephen Timms, the Labour MP for East Ham and co-chair of the Timms Review, addressed Parliament in April, paving the way for potential cuts. He stated: "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. Alan Milburn's review on the NEET problem more broadly will report in September; we will wait until then to decide whether to delay access to the universal credit health element until the age of 22. If we did do that, there would need to be exceptions."
Timeline for Decision
The announcement could come as soon as September, following the publication of the Milburn Review. The decision will be made by Timms and DWP Secretary Pat McFadden, who was reappointed to his role by the Labour Prime Minister in a recent Cabinet reshuffle. The Pathways to Work White Paper, expected in early autumn 2025, will provide further details on which proposals will be taken forward.
Advice Now, a charity providing guidance on benefits, stated: "We will know more about which proposals will be taken forward when they publish the expected White paper - potentially in early autumn 2025. Any proposals that come out of the Timms review or the Pathways to Work White paper will require separate legislation to be passed by parliament."
Political Context and Welfare Reform
The potential cut is part of a broader effort by the government to control spending on health and disability benefits. The number of young people not in employment, education, or training (NEET) has risen significantly, prompting reviews aimed at improving support. Critics argue that reducing cash payments could worsen poverty among disabled young people, while proponents claim that targeted support, including training and employment services, may be more effective than financial assistance.
The Labour government, under Prime Minister Keir Starmer, has focused on welfare reform as a key policy area. Pat McFadden, the DWP secretary, has been tasked with implementing changes to reduce the benefits bill while improving outcomes for claimants. The Timms Review and Milburn Review are central to this strategy, with the former specifically examining Personal Independence Payment and the latter focusing on Universal Credit and NEET issues.
Any final decision to delay access to the Universal Credit health element would require parliamentary approval. Ministers have indicated that exceptions would be made for certain groups, although details remain unclear. The White Paper expected later in 2025 is likely to outline the legislative path forward.
