The government is considering a proposal as part of its welfare reform that would bar individuals under 22 years old from claiming the health component of Universal Credit, known as the Limited Capability for Work and Work-related Activities element. Currently, individuals must be at least 18 years old to be eligible, and about 66,000 individuals aged 18 to 22 are currently receiving payments from the Department for Work and Pensions (DWP).
There is no specific timeline set for the implementation of this proposal, but it may take effect in 2027 or 2028 if approved. The proposal was discussed in the Pathways to Work green paper earlier this year, and further details are anticipated soon.
Labour MP Dr. Scott Arthur has raised questions about the rationale behind this proposal, specifically inquiring about the decision-making process to limit access to the Universal Credit Health Element for those under 22 years old. In response, Minister of State for the Department for Work and Pensions, Sir Stephen Timms, stated that the primary aim of the proposal is to motivate young individuals to enter the workforce by eliminating potential disincentives.
According to Timms, the proposal, outlined in the Pathways to Work green paper, aims to remove barriers to work and redirect resources towards enhancing opportunities for young people through the Youth Guarantee initiative. Feedback on raising the age for accessing the Universal Credit health element to 22 was sought during the Green Paper consultation, and plans will be disclosed in the future.
In addition to this proposal, the Universal Credit Bill will introduce changes affecting younger claimants, with reductions in the amount of the health element for new claimants starting next April. The weekly amount for new claimants will be reduced to £47, nearly half of the current £97 received by existing claimants. This rate will remain in effect for new claimants until 2029/2030, with exemptions for terminally ill patients and individuals meeting severe conditions criteria.
The severe conditions criteria apply to individuals with a permanent medical condition or disability that hinders work, and for whom improvement is unlikely according to medical assessments. This criteria is intended to protect individuals with no foreseeable work capacity from reassessment.