Universal Credit claimants to lose nearly £100 per week in DWP overhaul: 'Huge drop in income!'

Stella Creasey says cutting benefits will not 'magically' create jobs for unemployed
GB NEWS
Patrick O'Donnell

By Patrick O'Donnell


Published: 06/06/2025

- 19:50

The DWP is preparing to tighten the eligibility criteria for certain benefit payments, including Universal Credit

Thousands of Universal Credit claimants are at risk of losing nearly £100 per week under proposed reforms being drawn up by the Department for Work and Pensions (DWP).

Charities, including Disability Rights UK, is urging the Labour Government to U-turn on its decision to scrap the health component for under 22s linked to the primary benefit for working-age people.


As it stands, the Limited Capability for Work and Work-Related Activity (LCWRA) element for Universal Credit is applied to most adults aged between 16 to 21, if they are struggling to maintain employment due to health issues.

According to Disability Rights UK, almost 110,000 disabled adults in Britain are at risk of being financially worse-off by nearly £100 every week if the changes are given the green light.

Man looking sad and Universal Credit

Universal Credit changes could leave young people nearly £100 worse-off

GETTY

Other disability rights groups, including Contact and Special Needs Jungle, are calling on MPs to vote against the under-22 proposal and rallying the general public to join the campaign against it.

According to campaigners, the DWP's Green Paper is defending restricting access to the Universal Credit health component due to the number of young people who are described "NEET".

This is the term used to describe individuals who are classified as "Not in Education, Employment or Training", who DWP minister Liz Kendall is attempting to get back in the workforce.

However, research suggests removing access to the health element will not impact 73 per cent of 16-24 year old Britons who are deemed to be a part of this economic group.

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UK government's expenditure on benefits over timeThe UK government's expenditure on benefits has also increased over time, with the largest increase in 2020/21 due to the COVID-19 pandemicChatGPT

Disability Rights UK claims this move will impact primarily on disabled young people who are considered to be NEET due to difficulties in navigating the job market.

Furthermore, some young disabled people who have been able to move into work will also be negatively impacted by this policy, the campaign group claims.

Thousands of disabled people use low-paid or part-time jobs, while still claiming Universal Credit, to top up their earnings.

Under the reforms, a disabled worker who is aged under 22 could receive up to £97 per week less Universal Credit as a result of no access to a health element.

Jobcentre Plus signThe DWP is making dramatic changes to its services, including to Jobcentres PA

On its website, Disability Rights UK stated: "The proposed policy will not just impact young disabled people who are NEET, but also many young disabled people who are in education.

"Despite barriers to students claiming UC, it is often possible for those in non-advanced education who have passed the August after their 19th birthday to successfully claim UC as an adult.

"Under the current system, low-income families with a disabled 19-year-old already have to contend with a drop in income of at least £29.25 per week when their child stops being treated as a dependent and starts claiming UC in their own right.

"However, under the Government’s proposal, young disabled people aged under 22 would only receive £73 rather than £170 per week, meaning a much greater drop in household income."

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