Major changes to the welfare system could see the health element of Universal Credit scrapped for claimants under 25, while Personal Independence Payments (PIP) could be replaced with a new system and Motability cut further, according to The Guardian.
Under-25 health element at risk
One of the key options for the future of benefits now being discussed and most likely to be announced by Andy Burnham's Government is scrapping the health element of Universal Credit for claimants under 25. That element has already been halved to £217 a month.
The move would cover new and existing claimants and would come alongside intensive support for people to get into work, with subsidised jobs for younger people, targeted 'back to work' schemes and more mental health support. There are currently one million people aged between 16 and 24 who are not in education, employment or training.
PIP replacement and Motability cuts
At the same time, the Government is trying to work out how to scrap PIP - claimed by 4.1 million people - and replace it with a new system. Plans to change PIP last year sparked widespread protest.
A new system would include new eligibility criteria and assessments. The Guardian says officials have also been looking at more cuts to the Motability scheme - which allows disabled people to use PIP to lease new cars for three years. Officials have looked at systems in countries such as Denmark, where disability benefits are restricted to people under 40.
Government response and reaction
A government source said: “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.”
The changes would require new laws which would be voted on in Parliament next year.
Dr Sarah Hughes, CEO of Mind, said: “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 focussed 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.”
Conservative leader Kemi Badenoch said she would ban young people from signing on to the benefits system if they had never worked, and would cut £23 billion from the welfare budget. Reform UK plans to cut the welfare bill by £50 billion, scrapping PIP and replacing it with a benefit for people who are “gravely ill and severely challenged”.
