A newly published report is urging the UK government to withdraw Disability Living Allowance (DLA) from children with three specific medical conditions, as the number of claimants has risen sharply. Around 915,000 children currently receive DLA across England and Wales.
Child DLA helps with the additional costs of caring for a child under 16 who has difficulties walking, or who requires considerably more care than a child of the same age without a disability. According to the report, the bill for the benefit has increased significantly in recent years.
Costs and claimant numbers surge
Child DLA currently costs UK taxpayers £5.3 billion annually, representing 231% of pre-pandemic levels, and is projected to climb to £8.3 billion by 2030/31, the report says. The total number of children in receipt of DLA has nearly tripled in recent years, rising from 314,000 in 2010 to 915,000 in 2026.
Since the pandemic, 404,000 additional Child DLA claimants have been linked to mental health and related conditions, equivalent to roughly one extra child in every classroom across England and Wales, according to Policy Exchange. The DLA rate ranges between £30.30 and £194.60 per week, depending on the level of support the child requires.
Three conditions targeted
The Policy Exchange report, co-authored by Jean-André Prager, highlights a surge in DLA claims for children whose primary disabling conditions, as recorded by the DWP using its outdated DLA categories, are behavioural disorder (including eating disorders, conduct disorders and other childhood psychiatric disorders); hyperkinetic syndrome (primarily ADHD); and learning difficulties (broader than the modern definition and including autism and Down's syndrome).
Awards are also becoming systematically more generous to mental health claimants, with more being awarded the highest rates and fewer being awarded the "nil rate", it says. The report puts forward three measures to curb the growth in claimant numbers and associated costs.
Proposed savings and reinvestment
One proposal would see the government tighten eligibility criteria for the three fastest-growing mental health conditions, while adjusting the rate distribution at each award level to bring the average award per claim back to pre-pandemic levels, generating savings of £11.9 billion over four years. A further measure would involve revising and updating the criteria every three years thereafter, to ensure the distribution of awards and average award size remain at sustainable levels.
The third proposal would direct two-thirds of the savings generated towards reducing the deficit, while reinvesting the remaining third in "proactive measures to support children and their families". That funding would go to £1 billion more for Child and Adolescent Mental Health Services (CAMHS), nearly doubling the current annual budget; £300 million in additional funding for family hubs, nearly tripling the current annual budget; and £200 million for parental support programmes.
The report says this would still generate £3 billion in annual savings. A 70% reduction in awards, the authors claim, would save £11.9bn in its first four years, with one third of the savings recommended to be used to improve child mental health provision and two thirds used to reduce the national deficit.
Concerns raised over proposals
The website Benefits and Work describes the new proposals as 'concerning'. The site states that Mr Prager was previously involved in an 'infamous' attempt to reform PIP in 2024, with policy proposals that led to a green paper calling for a disability-costs based PIP system with some cash payments being replaced by vouchers, equipment or services.
In the wake of the new report, the website has raised concerns over the Timms Review, whose findings are due to be published in the autumn. The review into PIP - which can assist with additional living costs for those with a long-term physical or mental health condition or disability - is set to determine the future direction of the benefit. Sir Keir Starmer attempted and failed to tighten eligibility for PIP and launched the Timms Review after a significant backbench rebellion forced him to abandon his proposals.
Meanwhile, the Guardian has reported that some disabled people could receive "in kind" support rather than just cash payments under a radical overhaul of PIP put forward by official government advisers. The proposal, from an expert committee predominantly comprising disabled people, is among several "emerging recommendations" likely to shape the government's Timms review of PIP, anticipated to be published within the next two months, the newspaper says. Instead of automatically receiving weekly cash payments, currently ranging from £30.30 to £194.60 depending on requirements, some claimants could alternatively exchange part of the cash award for specialist equipment and aids, services, or skills and training, says the report. Yet it says PIP would remain non-means-tested.
How to claim DLA
You will typically be eligible for Disability Living Allowance (DLA) for children if all of the following criteria are met. The child must: be under 16 - anyone aged 16 or over must apply for Personal Independence Payment (PIP); require additional care or have mobility difficulties; be living in England or Wales at the time of claim (unless you're eligible to claim from overseas).
If your child is nearing the end of life (for instance, due to a life-limiting condition) you may be able to receive DLA for children more rapidly and at an enhanced rate. If your child lives in Scotland, apply for Child Disability Payment instead. If your child lives in Northern Ireland, apply for Disability Living Allowance for children in Northern Ireland.
You can claim DLA for children whether you are in employment or not. To claim DLA for a child you must be their parent or care for them as though you are their parent. This includes step-parents, guardians, grandparents, foster-parents or older brothers or sisters. For more information, visit the dedicated government web page on the DLA benefit.
