Burnham considers scrapping disability benefit for 184,000 under-25s in welfare overhaul despite 'crude cuts' pledge

From the Newshound archive · first published 2 October 2026 · last updated 3 October 2026.

Andy Burnham is considering scrapping the health element of Universal Credit for under-25s — a move that would affect around 184,000 young people aged 16 to 24 — and replacing it with a multibillion-pound programme aimed at getting them into work, covering areas such as subsidised jobs and mental health support. Officials are also examining whether to strip the benefit from existing claimants, not just new applicants, while PIP and the Motability scheme are under separate review. The proposal risks triggering a fresh Labour backbench revolt after a similar rebellion already forced Keir Starmer to drop welfare reforms last year.

Those with the most severe disabilities would be protected from cuts, though the UC health element has already been cut in half — down to £217 a month for most new claimants from next April.

Work and Pensions Secretary Pat McFadden told rebel MPs that reform cannot be avoided, arguing that young disabled people are 'told the kindest thing Government can do is sign them off and write them off — not any more.'

The Child Poverty Action Group cautioned that denying young people access to Universal Credit would 'dig the most disadvantaged deeper into hardship' rather than helping them into employment.