A report suggests that Andy Burnham's government could cut disability benefits for under-25s as part of a major overhaul of the UK's welfare system. The plan, expected to be announced in the coming days, would reportedly affect both new and existing claimants and would be accompanied by intensive employment support measures.
Proposed Changes to Disability Benefits
According to a report by the Guardian, the Personal Independence Payment (PIP) could be replaced, and further cuts could be made to the Motability scheme. The outlined plan would bring additional cuts to the disability benefit for under-25s, which has already been halved to £217 a month.
The change would apply to both new and existing claimants. It would be paired with intensive employment support measures, including subsidised jobs for younger people, targeted 'back to work' schemes, and increased mental health provision. Currently, one million young people aged between 16 and 24 are not in education, employment, or training.
PIP Replacement and Motability Cuts
Simultaneously, the government is deliberating how to dismantle PIP, which is currently claimed by 4.1 million people, and introduce a replacement scheme. Proposals to reform PIP last year triggered widespread demonstrations. Any new framework would incorporate revised eligibility criteria and assessments.
The Guardian reports that officials have also been exploring further reductions to the Motability scheme, which enables disabled individuals to use their PIP allowance to lease new vehicles on three-year agreements, as reported by Wales Online.
International Models and Government Response
Officials have examined welfare models in nations such as Denmark, where disability benefits are restricted to those under 40. A government insider revealed: "We will be bringing forward a comprehensive package of support and reform to tackle the scandal of a million young people not in education, employment or training. The details are yet to be decided, but we are committed to enabling work and opportunity, while always protecting those unable to work."
Any such amendments would necessitate new legislation, which would be put to a Parliamentary vote next year.
Reactions from Mental Health Charity and Opposition
Dr Sarah Hughes, CEO of Mind, commented: "While greater support for young people looking to get back into work is vital, any changes to benefits must take into account the day-to-day living costs that people face – and the impact any cuts will have on them being able to meet them.
"We know that many young people with mental health problems who rely on benefits are already struggling to make ends meet. With financial insecurity being one of the key drivers of poor mental health, any cuts to benefits could risk undermining people's health and wellbeing further.
"We welcome additional efforts to support young people with poor mental health back into work, education or training. But if people are focused on struggling to meet their essential costs, they will be unable to fully engage and could end up trapped in an ongoing cycle of poverty and poor mental health."
Meanwhile, Conservative leader Kemi Badenoch declared she would prohibit young people who have never been employed from accessing the benefits system, while also pledging to slash £23 billion from the welfare budget. Reform UK intends to slash the welfare budget by £50 billion, abolishing PIP and substituting it with a benefit aimed at those who are "gravely ill and severely challenged".
