Andy Burnham could cut the health element of Universal Credit for under-25s (Image: Getty)
Andy Burnham could scrap a major disability benefit in a shakeup of the welfare system for young people, reports suggest. The Prime Minister is reportedly considering axing the health element of Universal Credit for under-25s in a bid to get them back into work.
The benefit would be replaced by a multi-billion-pound package of measures including mental health support, “back to work” schemes and subsidised job opportunities, according to The Guardian.
The plans, which are awaiting the conclusion of reviews by Alan Milburn into youth employment and the Timms panel into the Personal Independence Payment (PIP), are part of the Government’s bid to cut the number of young people not in education, employment or training (Neet). The UK Neet rate currently sits at around one million.
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The change would be aimed at getting under-25s back into work (Image: Getty)
Ex-cabinet minister Mr Milburn was commissioned by former Prime Minister Keir Starmer to carry out the review and will make recommendations later this year.
Lucy Schonegevel, director of impact at Action for Children, said the reported cuts were “deeply concerning”.
She added: “If confirmed, that would be at odds with the Prime Minister’s recent warning against ‘crude cuts’ … Serious investment in high-quality, tailored employment support is vital, but employment support alone cannot overcome a lack of jobs.”
Sara Ogilvie, director of policy at the Child Poverty Action Group, also said: “If we learnt anything from the austerity era it’s that cutting social security support drives up child poverty and cuts young people off from opportunity.
“Much better training and employment support is needed but blocking access to Universal Credit would not remove young people from jeopardy, it would dig the most disadvantaged deeper into hardship.”
A Government source told The Guardian it would bring forward a “comprehensive package of support and reform to tackle the scandal of a million young people not in education, employment or training”.
They added that details are yet to be decided but “we are committed to enabling work and opportunity, while always protecting those unable to work”.
A DWP spokesperson said: “The Milburn and Timms reviews, due in the autumn, will lay the foundation for sustainable reform, and we will not pre-empt their findings.
“We are already changing the system through the youth guarantee, narrowing the gap between universal credit standard and health rates, restoring face-to-face assessments, and investing a record £3.5bn in employment support for disabled people and those with long-term conditions. We will always ensure there is a safety net for the most vulnerable and those who are unable to work.”
The Disability Benefit Andy Burnham ‘Could Scrap’ in Major Welfare Crackdown
Britain’s welfare system is heading towards another major political battle as Prime Minister Andy Burnham considers changes to disability benefits, with younger claimants potentially facing some of the biggest consequences. At the centre of the controversy is the health-related element of Universal Credit, which provides additional financial support to people whose health conditions or disabilities affect their ability to work.
The proposals form part of a wider effort to reduce the welfare bill and help more young people move into employment, education and training. Ministers argue that people who can work should receive meaningful assistance to do so, rather than becoming trapped in a system that offers too little help to improve their circumstances.
But disability campaigners warn that removing financial support without providing effective alternatives could leave vulnerable people struggling to afford food, heating, transport and other essentials. The government faces a difficult question: how can it encourage employment and reform welfare without making life harder for people whose medical conditions genuinely limit their options?
The Benefit at the Centre of the Storm
The benefit reportedly under consideration is the health element of Universal Credit for people under the age of 25. It is separate from Personal Independence Payment, commonly known as PIP, which helps eligible disabled people meet additional costs arising from their condition.
The distinction is important. Universal Credit provides financial support to people on low incomes, including an additional health-related amount for eligible claimants whose conditions affect their ability to work. PIP, by contrast, is designed to help with disability-related costs and is not dependent on whether someone is employed.
Under the proposals reported in October 2026, ministers have been considering whether to remove the health element for younger claimants and replace it with a package of employment support, mental health services, subsidised jobs and targeted assistance. Officials have also examined whether the system for disability-related support should be redesigned for younger people.
These are proposals under consideration, not confirmation that the entire benefit will be abolished. The final policy depends on the government’s reviews and subsequent decisions. Nevertheless, the possibility has raised concerns among young people who rely on the payment to manage the financial consequences of illness or disability.
The government has already reduced the health element for most new claimants under earlier reforms, with the lower rate taking effect in April 2026. Any further changes would therefore come after a period in which some younger people have already experienced a reduction in the additional support available to them.
Why Burnham Wants to Reform the Welfare System
Burnham has argued that Britain’s welfare bill must be brought under control and that the system should do more to help people find work when they are able to do so.
The government faces a difficult employment challenge. Large numbers of young people are not in education, employment or training, while some people who initially claim health-related benefits remain outside the labour market for many years. Ministers believe that earlier intervention, better mental health support, vocational training and more flexible employment opportunities could help some of these individuals build independent lives.
The proposed reforms are also linked to a broader concern about the relationship between welfare and public finances. Spending on benefits is substantial, and the government is under pressure to find savings while financing public services, social care and other priorities.
Supporters of reform argue that a system focused primarily on financial payments may fail people if it does not provide practical help to overcome barriers to work. Someone experiencing a treatable mental health condition, for example, might benefit from appropriate treatment, a gradual return to employment and a workplace willing to make adjustments.
However, that argument depends on services being available when people need them. Mental health treatment can involve waiting lists, specialist employment support may not be available in every area, and some employers are unable or unwilling to accommodate particular disabilities.
A change to benefit eligibility cannot, by itself, resolve these problems. The effectiveness of the government’s approach will depend on whether the promised support is accessible, properly funded and tailored to individual needs.