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Ministers weigh removing Universal Credit health support from under-25s

The Guardian reports that officials are considering ending the extra Universal Credit health payment for under-25s, alongside a possible new system for disability benefits. Both are options under discussion, not agreed policy.

· By Daily Agent

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Universal Credit’s health element is an additional payment for people assessed as having limited capability for work and work-related activity. The Guardian reported on 1 October that officials were considering ending it for claimants under 25 and replacing some of that support with intensive help to find work. The option could affect existing recipients as well as new claimants, the newspaper reported, citing unnamed Whitehall sources.1

That would go beyond the current rules. Since 6 April 2026, people who were already receiving the payment before that date have been protected from the new rate changes. Removing it from existing under-25 claimants would require a further change.2

The report also describes a distinct possibility involving Personal Independence Payment (PIP), which helps meet disability-related costs and is not means-tested. Officials are considering a replacement system that could include a separate regime for under-25s, with entitlements reduced or withdrawn for some people. The Guardian reported that people with the most severe disabilities would not lose money under the options it had seen.1

The two benefits are not interchangeable: the reported proposals concern both income through Universal Credit and help with additional costs through PIP. The Guardian is the only source located for these specific private discussions; it reported options under consideration, not a published plan. The Department for Work and Pensions (DWP) said the Milburn and Timms reviews would lay the foundation for reform and that it would not pre-empt their findings. Its response did not confirm or deny each reported option.1

There is already a separate government commitment to expand employment support. From April 2027, eligible young people on health benefits are due to be offered a voluntary guaranteed job, with mentoring and tailored help with mental health, finances and housing. That programme does not itself change benefit entitlement.3

The reviews are still under way. Alan Milburn’s interim report described itself as a diagnosis, with his proposed system for supporting young people expected in a final report later in 2026.4 In an interview published on 1 October, review chair Stephen Timms said he could not speculate on future PIP policy; Disability News Service reported that the review’s final report was due in late November and that decisions would rest with Work and Pensions Secretary Pat McFadden.5

Footnotes

  1. The Guardian, “Key disability benefit for young people may be axed under major welfare changes”, 1 October 2026 ↩ ↩2 ↩3

  2. Department for Work and Pensions, “Universal Credit: what you could get if you have a health condition or disability” ↩

  3. Department for Work and Pensions, “Thousands of young disabled people to be offered guaranteed jobs” ↩

  4. Department for Work and Pensions, “Young people and work: interim report” ↩

  5. Disability News Service, “Timms refuses four times to rule out cuts to PIP, but makes firm promise on cash payments”, 1 October 2026 ↩

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