URGENT UPDATE: The Department for Work and Pensions (DWP) faces growing pressure to withdraw Universal Credit (UC) and Personal Independence Payment (PIP) from individuals with specific mental health conditions. The Centre for Social Justice (CSJ) has issued a stark warning that ignoring the potential savings highlighted in the Timms Review could result in a dramatic increase in welfare spending, leaving millions dependent on government benefits.
The CSJ’s recommendations target approximately 1.1 million individuals suffering from milder forms of anxiety, depression, and ADHD. They propose a reset of remaining awards to just £103 per week, a move they claim could save the government £7.4 billion by 2029/30. At least £1 billion of these savings would be reinvested into significantly expanded NHS Talking Therapies and enhanced support for employment.
The DWP is also urged to implement a new Future Workforce Credit, which would provide a tax cut for employers who hire young people classified as NEETs (Not in Education, Employment, or Training). The funding for this initiative would come from eliminating the UC health element for individuals under 22, potentially helping 120,000 young people secure jobs while generating £765 million in combined tax and welfare savings.
In addition, the CSJ is advocating for the establishment of a new Work and Health Service, funded by £300 million in savings, aimed at expanding current WorkWell pilots. This service would assist more individuals with workplace adjustments and shift the burden of issuing fit notes away from overstretched general practitioners.
The call for changes comes amid rising concerns over the current welfare system’s sustainability.
“Everyone can see the system is failing,”
stated Joe Shalam, Policy Director at the CSJ.
“Abandoning proper welfare reform while costs surge is a political choice with a £27 billion bill attached. That bill lands on every taxpayer, and even worse, a lost generation will be stuck on benefits with no route back to work or independence. It is time for change this Budget.”
In a related move, there are renewed calls for regulations requiring employers to advertise domestic job openings to UK workers before seeking foreign recruitment through the visa system, according to reports from Birmingham Live.
As discussions heat up around these proposals, the DWP’s next steps will be crucial. Stakeholders are urged to stay informed as this story develops, especially given its potential impact on millions of vulnerable individuals across the UK.
Stay connected for the latest updates and join the conversation on social media. This is a pivotal moment for welfare reform—don’t miss out on the developments that could shape the future of support for those in need.
