Major welfare changes could scrap a key disability benefit for under-25s, replacing it with a multibillion-pound support package to get young people into work. The Guardian has learned that ministers are working up sweeping plans that could remove the health element of universal credit for claimants under 25, worth up to £217 a month, and offer intensive support instead.
What Are the Proposed Welfare Changes?
Whitehall sources say the package under debate is much bigger than previously thought. The government hopes to persuade more people on benefits back into work by offering subsidised jobs, targeted 'back to work' schemes, and mental health support. The plans await reviews by Alan Milburn on young people's employment and the Timms panel on personal independence payment (Pip).
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Key Elements of the Reform
- Removing the health element of universal credit for under-25s
- Offering intensive support to get into work
- Subsidised jobs for younger people
- More targeted 'back to work' schemes
- Support with mental health
Impact on Young People and the Economy
If implemented, these changes could significantly alter the financial landscape for disabled under-25s. The health element, already halved to £217 a month, provides crucial support for sick and disabled people. Removing it for existing claimants, not just new ones, is also being considered. While the government argues this will boost employment, critics fear it could push vulnerable young people into poverty.
Comparison of Current vs Proposed Support
| Aspect | Current System | Proposed System |
|---|---|---|
| Health element for under-25s | Up to £217 per month | Removed |
| Employment support | Limited | Intensive, subsidised jobs |
| Mental health support | Variable | Enhanced |
| Eligibility | Non-means-tested (Pip) | Means-tested (Universal Credit) |
Political and Social Implications
The move is politically fraught after last year's welfare rebellion by Labour MPs. However, ministers feel opposition has waned after weeks of persuasion. The reforms aim to reform, not just cut, but the risk of backlash remains high. The outcome will depend on the reviews and how the support package is delivered.
FAQ
What is the health element of universal credit?
It is an additional amount paid to claimants with health conditions or disabilities, currently up to £217 a month for under-25s.
Who will be affected by the disability benefit changes?
Under-25s claiming universal credit with a health element, including both new and existing claimants if the proposal goes ahead.
When will these changes take effect?
No timeline has been set; the plans await reviews by Alan Milburn and the Timms panel before any implementation.
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