The Department for Work and Pensions (DWP) is paying reduced rates of Universal Credit and Personal Independence Payment (PIP) to claimants under the age of 25, a policy that has drawn sharp criticism from disability charities and young claimants alike.
Under current rules, young people aged 16 to 24 receive a lower standard allowance for Universal Credit compared to those aged 25 and over. For new Universal Credit claimants, the health element has been halved, with payments cut from £100 a week to just £50 a week. This reduction applies to the health-related component of the benefit, which is designed to support those with limited capability for work.
Impact on young claimants
Young claimants have voiced frustration over the lower rates, with many saying they are being forced to rely on food banks because they lack the financial backing of the "bank of mum and dad." The reduced payments come at a time when living costs are soaring, leaving many young disabled people struggling to cover rent, bills, and food.
The situation is set to become more challenging by 2028, when the Work Capability Assessment (WCA) is scheduled to be scrapped. Under the proposed changes, the PIP assessment alone will be used to determine eligibility for the Universal Credit health element. This could have a particular impact on under-25s, who already receive lower rates of Universal Credit.
Charity warns of poverty risk
James Taylor, director of strategy at the disability equality charity Scope, warned in an interview with the Big Issue: "Young disabled people are already on a financial knife edge. The health element of universal credit has been halved for new claimants, and this will push disabled people into poverty and force choices between rent, bills, food and other essentials."
Taylor added: "Life costs more when you’re disabled. Any further cuts to disability benefits won’t help young disabled people into work. The government should listen to them and build a welfare system that tackles real barriers, not one that makes life even harder."
Government response
A spokesperson for the DWP defended the approach, stating: "We want to see the potential of young people up and down this country fully realised, whether that be through education, training or work. We are pushing ahead with the biggest youth employment reforms in a generation to create almost a million opportunities for young people, boosting skills through our Youth Guarantee, backed by a £2.5 billion investment and supporting 300,000 disabled people through our Connect to Work programme to help more people into work."
The DWP spokesperson's comments highlight the government's focus on employment support, but critics argue that cutting benefits for young disabled people undermines these efforts. The Connect to Work programme, part of the government's £2.5 billion investment, aims to support disabled people into employment, but charities like Scope stress that financial support is essential to enable people to seek work in the first place.
Broader context
The reduction in the health element of Universal Credit for new claimants is part of a wider set of welfare reforms that have been criticised by anti-poverty campaigners. The decision to halve the health element from £100 to £50 per week for new claimants represents a significant cut in real terms, and the impact is disproportionately felt by younger claimants who already receive lower base rates.
With the planned abolition of the WCA by 2028, the future of health-related benefits remains uncertain. The government argues that streamlining assessments will simplify the system, but disability rights groups fear it could lead to more people losing essential support.
As the cost-of-living crisis continues to squeeze household budgets, the debate over welfare provision for young disabled people is likely to intensify. The government insists its reforms are designed to help people into work, but for many young claimants, the immediate concern is making ends meet.
