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The Independent UK
The Independent UK
National
Albert Toth

DWP told to end cash PIP and Universal Credit payments for young claimants with depression

  • A major report by the Tony Blair Institute for Global Change (TBI) has called for a radical overhaul of the UK welfare and employment systems to tackle the crisis of nearly one million young people not in education, employment, or training (Neet).
  • Under the TBI proposals, under-25s with non-work-limiting health conditions like anxiety and depression would no longer receive cash benefits from Personal Independence Payment (Pip) or Universal Credit , with funds instead redirected into mental health support, skills training and job placements.
  • The TBI also recommends pausing government plans to equalise minimum wage rates for younger workers, arguing that employment costs for 18-year-olds have surged by 40 per cent since 2015 and currently discourage businesses from hiring.
  • Disability charities and campaigners, including Scope, have strongly pushed back against benefit cuts, warning that stripping financial support from young disabled people will plunge them into poverty rather than helping them enter the workforce.
  • The recommendations arrive as the government seeks to curb rising spending on health benefits through ongoing reviews led by Alan Milburn and Stephen Timms , which aim to reform welfare and expand youth employment opportunities.

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