{"id":125923,"date":"2026-09-24T14:45:00","date_gmt":"2026-09-24T13:45:00","guid":{"rendered":"https:\/\/en.econostrum.info\/uk\/?p=125923"},"modified":"2026-09-24T14:40:31","modified_gmt":"2026-09-24T13:40:31","slug":"dwp-stop-cash-pip-universal-credit-under-25","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/uk\/dwp-stop-cash-pip-universal-credit-under-25\/","title":{"rendered":"DWP Told To Stop Cash PIP And Universal Credit Payments For Under-25s With Anxiety And Depression"},"content":{"rendered":"\n

A proposal backed by Sir Tony Blair\u2019s thinktank has called for a major change to welfare support for some under-25s, suggesting that cash payments for certain claimants with anxiety or depression could be redirected into treatment, skills training and job opportunities.<\/p>\n\n\n\n

The recommendation targets young people receiving the health-related elements of Personal Independence Payment (PIP)<\/strong> and Universal Credit (UC)<\/strong> because of the two conditions. The proposal has sparked discussion about how the welfare system should support young people who are outside education, employment or training.<\/p>\n\n\n\n

Thinktank Calls For New Approach To Youth Benefits<\/h2>\n\n\n\n

According to Birmingham Live<\/a><\/em><\/strong>, the plan comes from the Tony Blair Institute (TBI)<\/strong>, which argues that a different approach could help more young people build confidence, gain skills and reconnect with the workforce.<\/p>\n\n\n\n

The TBI<\/strong> has argued that some young people are becoming disconnected from employment and education for long periods, and that government support should focus more heavily on health recovery, training and access to work.<\/p>\n\n\n\n

Former health minister Alan Milburn<\/strong> described the current situation as a \u201ccatastrophic system failure,\u201d adding that \u201cmore young people are getting trapped on benefits when the overwhelming majority of them want to work.\u201d<\/p>\n\n\n\n

The proposed changes would not remove all welfare support for young people. Instead, the thinktank suggested changing how some payments are delivered by directing resources toward services designed to address barriers linked to health, skills and employment.<\/p>\n\n\n\n

The proposal focuses on young people aged under 25 <\/strong>who receive support linked to anxiety or depression, two conditions frequently cited in discussions about rising numbers of young people claiming health-related benefits.<\/p>\n\n\n\n

TBI Highlights Rising Number Of Young People Outside Work And Education<\/h2>\n\n\n\n

The thinktank has linked its proposal to the wider issue of young people who are classified as NEET<\/strong>, not in employment, education or training.<\/p>\n\n\n\n

The TBI said: \u201cThe NEET crisis is a serious challenge, but it is not insurmountable. Many NEET young people want to work, learn or train, and businesses have much to gain from bringing a new generation into the workforce.\u201d<\/p>\n\n\n\n

The organisation said tackling the issue requires action from both government and employers. It argued that young people need support to improve their health, skills and confidence, while businesses need incentives and opportunities to bring more young workers into employment.<\/p>\n\n\n\n

Jose Mejia, from the TBI, added: \u201cAlmost 1 million 16- to 24-year-olds are neither earning nor learning \u2013 around one in eight of their generation. Six in ten are economically inactive rather than unemployed, and slightly more than that have never had a job.\u201d<\/p>\n\n\n\n

He also said: \u201cBritain has gone from being around the European average for youth disengagement a decade ago to being one of the continent\u2019s worst performers.\u201d<\/p>\n\n\n\n

\"A
Credit: Shutterstock<\/figcaption><\/figure>\n\n\n\n

Charities Warn Changes Must Focus On Support And Opportunity<\/h2>\n\n\n\n

A coalition of more than 40 charities, including Action for Children<\/strong> and Trussell<\/strong>, responded to the proposals by calling for any reform to be designed around helping young people rather than introducing measures based on punishment.<\/p>\n\n\n\n

The organisations told Alan Milburn that future changes should be \u201cbuilt around the principles of support and opportunity, rather than the failed punitive approaches of the past.\u201d<\/p>\n\n\n\n

The debate comes as policymakers examine how welfare systems can respond to rising numbers of young people reporting mental health challenges and struggling to enter the labour market.<\/p>\n\n\n\n

Supporters of the proposal argue that redirecting resources could create more routes into employment, while charities have highlighted the need to ensure vulnerable people continue receiving meaningful assistance.<\/p>\n\n\n\n

Welfare Debate Centres On Future Support For Young People<\/h2>\n\n\n\n

The discussion reflects wider questions about how governments balance financial support with employment services for younger claimants.<\/p>\n\n\n\n

The DWP<\/strong><\/a> has not announced a policy change ending cash payments for all under-25s with anxiety or depression. The proposal remains a recommendation from the Tony Blair Institute<\/strong> rather than an implemented government measure.<\/p>\n\n\n\n

The TBI said its aim is to reduce long-term disengagement among young people by addressing health barriers, improving access to training and increasing employment opportunities.<\/p>\n\n\n\n

The organisation reported that almost 1 million people aged 16 to 24 are currently neither earning nor learning.<\/p>\n","protected":false},"excerpt":{"rendered":"

A new welfare reform proposal has called on the DWP to replace cash payments for some under-25s receiving PIP and Universal Credit due to anxiety or depression, with funding redirected toward mental health support, training and employment opportunities.<\/p>\n","protected":false},"author":4,"featured_media":111838,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[46],"tags":[],"class_list":["post-125923","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-social-welfare","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33","no-featured-image-padding"],"_links":{"self":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/125923","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/comments?post=125923"}],"version-history":[{"count":2,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/125923\/revisions"}],"predecessor-version":[{"id":125925,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/125923\/revisions\/125925"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/media\/111838"}],"wp:attachment":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/media?parent=125923"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/categories?post=125923"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/tags?post=125923"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}