Key facts
- UK Work and Pensions Secretary Pat McFadden stated that Labour MPs have a moral responsibility to reform the welfare system.
- The government is preparing to overhaul benefits for young people and those with disabilities.
- Two reviews, one on young people by Alan Milburn and another on disability benefits by the Timms panel, are expected this autumn.
- The reforms aim to shift focus from entitlement to opportunity and employment support.
- About 205,000 16- to 24-year-olds received personal independence payment (Pip) for ADHD or autism in April, a threefold increase since 2019.
- Working-age disability benefits spending is forecast to rise from £14 billion in 2019 to £34 billion in 2030.
UK Work and Pensions Secretary Pat McFadden has signaled a significant overhaul of the welfare system, emphasizing a 'moral crusade' to move young people from disability benefits into work. He stated that Labour MPs have a responsibility to renew the welfare state, shifting the focus from entitlements to life-changing opportunities and employment support.
The government is preparing to implement changes following two reviews expected this autumn: one on young people's benefits led by Alan Milburn, and another on disability benefits by the Timms panel. These reviews are anticipated to lead to a new system and assessment process for disability benefits, potentially requiring new legislation. A key focus will be on supporting younger individuals into jobs and training, building upon the existing 'jobs guarantee' program for those under 25.
This push for reform comes after a previous attempt by Keir Starmer's government to cut disability benefits was met with significant backlash from Labour backbenchers and charities, leading to a U-turn. Despite these concerns, the government, under Andy Burnham, intends to change the system in a 'Labour way' that prioritizes returning people to work.
The need for reform is underscored by a sharp rise in young people claiming disability benefits, particularly since the pandemic. Currently, one million young people are out of work, employment, or training. Specifically, claims for personal independence payment (Pip) for disabilities linked to ADHD or autism among 16- to 24-year-olds have more than tripled since 2019, costing an estimated £1.36 billion in 2025-26. McFadden highlighted the high financial and human cost of the current system, noting that a young person claiming sickness benefits at 20 is more likely to still be on them at 30 than to have held a steady job for a year in between.