Published On: Fri, Oct 24th, 2025
Business | 4,031 views

DWP issues update on plan to ‘restrict’ Universal Credit access | Personal Finance | Finance

One proposal in the government’s welfare overhaul would prevent people under 22 from accessing the health component of Universal Credit, also known as the Limited Capability for Work and Work-related Activities element. Currently, claimants must be at least 18 years old, with approximately 66,000 people aged between 18 and 22 receiving these DWP payments.

No fixed date has been established for implementing this suggestion, though it could take effect in 2027 or 2028 should the proposal receive approval. This modification was subject to consultation in the Pathways to Work green paper earlier this year, with further details anticipated shortly. Questioning this suggestion, Labour MP Dr Scott Arthur asked about the reasoning behind putting forward this proposal.

He wrote: “To ask the Secretary of State for Work and Pensions, whether his Department plans to publish the decision-making process behind the proposal to restrict access to the Universal Credit Health Element for under-22s.”

Sir Stephen Timms, Minister of State for the Department for Work and Pensions, explained that the primary motivation behind this suggestion was to incentivise young people into employment by eliminating the benefit that might be discouraging it.

He wrote: “The reasoning for this proposal, set out in the Pathways to Work green paper published in March, is the removal of a potential disincentive to work and the possibility that resources may be better spent on improving the quality and range of opportunities available to young people through the Youth Guarantee.

“We welcomed views on raising the age someone can access the Universal Credit health element to 22 as part of our Green Paper consultation, which closed on 30 June. We are considering responses and will set out our plans in due course.”

This isn’t the sole proposed alteration to Universal Credit that could impact younger claimants. The Universal Credit Bill will be rolled out through several phases next April.

The Bill will slash the amount of the Universal Credit health element new claimants can receive. This will be cut nearly in half, with existing claimants getting £97 a week whilst new claimants after next April will only get £47 per week.

The health element will also remain at this rate for new claimants until 2029/2030.

Typically, benefit payments rise each April in line with inflation. Terminally ill patients and people who satisfy the severe conditions criteria won’t be impacted by the freeze.

The severe conditions criteria cover people who have a permanent, medically recognised condition or disability that prevents them from doing work, and a doctor has confirmed the condition is unlikely to improve. The criteria is being introduced in order to avoid people who have no foreseeable ability to work from being reassessed.