The Department for Work and Pensions (DWP) is facing calls to tighten rules for Universal Credit and Personal Independence Payment (PIP) claimants born after 2002, as new figures show more than 1.2 million under-25s are now claiming these benefits.
According to DWP caseload data, the government spends £7,048 a minute on PIP for young claimants and a further £6,058 a minute on the minimum standard allowance for Universal Credit. This totals approximately £13,000 every minute, a figure that has sparked concern among politicians and experts.
Political pressure mounts
Conservative MP Sir Alec Shelbrooke criticised the current approach, stating: "It's an unsustainable position and no way to run the welfare state. Labour want to spend £13k a minute on this and they have totally failed to grasp the problem. If this continues, not only will the number of NEETs go up and not down, the income tax to pay for them won't be generated."
The analysis reveals that autism is now the most expensive condition for under-25s on PIP, costing taxpayers £2,545 every minute. ADHD follows as the second highest at £877 a minute, while mixed anxiety and depression disorders cost approximately £470 every 60 seconds.
Government response
A DWP spokesperson defended the government's actions, saying: "Every young person deserves the chance to earn and learn, which is why we've brought forward a £2.5 billion youth employment support package involving cash payments, alongside the biggest reforms to apprenticeships in a generation. We are also investing £3.5 billion in employment support for sick and disabled people, including young people, to help them move off of welfare and into work, driving growth across the country."
Alan Milburn, who is examining the NEET (Not in Education, Employment, or Training) crisis, said the system is too focused on paying health and disability benefits rather than supporting young people into jobs. He warned: "If you are a young person today and you apply and get a health and disability benefit, there's a 50% chance that in 15 years' time you will still be eligible. You'll still be out of work. That is neither a good outcome, frankly, nor is it a progressive cause."
Impact on welfare system
The rising number of young claimants highlights the growing pressure on the welfare state. With costs exceeding £13,000 per minute, the sustainability of current policies is being questioned. The government's investment packages aim to address these concerns, but critics argue that more fundamental reforms are needed to prevent long-term dependency.
As the debate continues, the DWP faces the challenge of balancing support for vulnerable young people with the need to encourage employment and reduce the financial burden on taxpayers.
