Under-25s could lose Universal Credit health element under Burnham plan

Prime Minister Andy Burnham is reportedly considering scrapping the health element of Universal Credit for claimants under 25. It would be replaced by a multi-billion-pound package of mental health support, back to work schemes and subsidised jobs. The Guardian first reported the plan and the Daily Express has since covered it. No final decision has been made, and the Government says the details are still to be decided.

According to the reports, the aim is to cut the number of young people not in education, employment or training, often called Neet. That number currently sits at around one million in the UK. Charities have already warned that taking away financial support could push the poorest young people deeper into hardship.

This matters well beyond the young claimants themselves. Many parents and grandparents help support a son, daughter or grandchild who is out of work because of poor health. Any cut to that young person's Universal Credit could be felt across the whole household.

What the reported plan would put in its place

According to The Guardian, the health element for under-25s would be replaced by a package worth billions of pounds. It would include mental health support, back to work schemes and subsidised job opportunities. The exact size of the package has not been published, and neither has how much of it would be new money.

The plans are said to be waiting on two reviews that have not yet reported. One is a review of youth employment being carried out by Alan Milburn, who will make recommendations later this year. The other is the Timms panel review of Personal Independence Payment (PIP).

The reaction from charities has been sharp. Lucy Schonegevel, director of impact at Action for Children, called the reported cuts "deeply concerning". She said that if they were confirmed they would clash with the Prime Minister's own recent warning against "crude cuts", and that employment support alone cannot overcome a lack of jobs. Sara Ogilvie, director of policy at the Child Poverty Action Group, said the austerity era showed that cutting social security drives up child poverty, and that blocking access to Universal Credit would "dig the most disadvantaged deeper into hardship".

Which young claimants could be affected

The reports refer specifically to Universal Credit claimants aged under 25 who get the health element. This is the higher rate paid to people whose health affects their ability to work. The reported plans do not mention claimants aged 25 and over.

It is not yet clear whether young people who already get the health element would keep it, or whether any change would apply only to new claims. No figures have been published for how much an affected young person might lose each month. The reports also do not say how many under-25s currently get the health element.

A Government source told The Guardian that the Government was committed to "always protecting those unable to work". However, nobody has said who would count as unable to work under any new rules, and that test would decide who keeps their money. The DWP also says it is already narrowing the gap between the standard and health rates of Universal Credit, separately from any decision on under-25s.

Key numbers

• Around one million: the number of young people in the UK not in education, employment or training, according to the reports.
• Under-25s: the age group whose Universal Credit health element is reportedly being considered for removal.
• £3.5bn: what the DWP calls record investment in employment support for disabled people and those with long-term conditions.
• 6: the number of older benefits that GOV.UK says Universal Credit is replacing with a single monthly payment.

When a decision could come

Nothing changes yet. The DWP says the Milburn and Timms reviews are due in the autumn and that it will not pre-empt their findings. Recommendations on youth employment are expected later this year. The Government has promised a "comprehensive package of support and reform" to follow, but says the details are yet to be decided.

In the meantime, the DWP says it is already changing the system through the youth guarantee, restoring face-to-face assessments and narrowing the gap between the standard and health rates. It says there will always be a safety net for the most vulnerable and those who are unable to work.

What you can do now

If you or a young person in your family gets the health element now, there is nothing to do yet because no change has been announced. Keep an eye on letters and journal messages, and make sure the contact details on the account are up to date. The GOV.UK guide to Universal Credit explains who can claim, including people who cannot work.

To check what your household could be entitled to, or how working more hours would affect your payments, the GOV.UK benefits calculators page lists free independent tools such as entitledto, Turn2us and Policy in Practice. Have accurate details of savings and income to hand, including a partner's.

Citizens Advice and local benefits advisers can help with problems on an existing claim. If a young person in your family is struggling with their health and work, they can ask their work coach now what employment and mental health support is already available. There is no need to wait for the reviews before doing that.

Your questions answered

Has the Universal Credit health element been scrapped for under-25s?

No. The Guardian reported that the Prime Minister is considering it, but a Government source said the details are yet to be decided. The DWP says it will not pre-empt the Milburn and Timms reviews, which are due in the autumn.

What would replace it?

According to The Guardian, the replacement would be a multi-billion-pound package including mental health support, back to work schemes and subsidised job opportunities. The full cost has not been published, and neither has how young people would access the package.

Does this affect PIP?

The reports do not say that PIP would be scrapped for young people. However, the plans are waiting on the Timms panel review of PIP, so its findings are expected to shape what the Government does next.