Andy Burnham Faces Labour Backlash Over Welfare Reform Plans

Andy Burnham is facing opposition from Labour MPs over proposed welfare reforms that could see the health element of Universal Credit replaced for some young people.

Under the potential changes, claimants under 25 with less severe conditions might no longer receive a monthly cash payment of £217. Instead, they could be offered intensive support aimed at helping them find employment, including subsidized jobs and mental health assistance. These reforms are part of broader welfare changes being developed, which may also include modifications to the Personal Independence Payment (PIP) system.

The Prime Minister's office is anticipating resistance from within the party, reminiscent of a previous rebellion last year. That incident forced Sir Keir Starmer to reverse planned cuts to disability benefits, a move that reportedly undermined his authority.

Labour MP Neil Duncan-Jordan has voiced his concerns, stating on social media that he had previously warned Burnham against cutting disability benefits. He argued that altering eligibility criteria does not address the reality of disability but rather removes essential support. Duncan-Jordan cautioned against repeating past mistakes, referencing the situation with Starmer.

Rachael Maskell, another MP who has previously opposed welfare bill changes, commented that removing the health element of Universal Credit would significantly impact young disabled people who face increased costs associated with their conditions. While supporting initiatives to help young disabled people enter the workforce, including supported placements, she emphasized the necessity of an adequate safety net to prevent poverty if employment is not feasible.

Dr. Sarah Hughes, Chief Executive of the mental health charity Mind, highlighted the link between financial insecurity and poor mental health, suggesting that benefit cuts could further jeopardize people's wellbeing.

The Department for Work and Pensions has stated that it will not pre-empt the findings of ongoing reviews into PIP and the support for young people not in education, employment, or training (Neets). A spokesperson assured that a safety net would always be provided for vulnerable individuals and those unable to work.

Recent research indicates a significant rise in the number of children claiming disability benefits. A report by Policy Exchange found that 915,000 children under 16 are now receiving Child Disability Living Allowance (DLA), a substantial increase from 314,000 in 2010. Annual spending on these payments has grown from £2.3 billion in 2019-20 to £5.3 billion last year, with forecasts projecting it to reach £8.3 billion by the end of the decade.

The surge in claims has been largely attributed to new claims related to mental health conditions, which have increased by 404,000 since the pandemic. While claims for other conditions have seen a decline, there has been a notable rise in young people diagnosed with learning disabilities, ADHD, and behavioral disorders receiving financial support for care at home.

The Policy Exchange report also noted that DLA awards for mental health claimants have become more generous. Since Covid-19, the proportion of claimants receiving the highest care component, worth £114.60 per week, has increased from 30.5% to 42.4%. Furthermore, children with mental health conditions are more likely to receive the 'mobility component,' intended for those with walking difficulties or who require supervision outdoors, adding an extra £80 weekly.

Jean-André Prager, a co-author of the report, suggested that Child DLA is now supporting a different demographic than originally intended. He stated that while disabled children deserve support, it's crucial to ensure it reaches those with the greatest needs and to consider if funds could be more effectively used for earlier intervention for children and families. Keir Haldane, a Research Fellow at Policy Exchange, described the growth in Child DLA as striking in terms of both claimant numbers and award levels.

The Policy Exchange report proposed that restricting eligibility criteria for Child DLA could lead to savings of £11.9 billion over four years.

The Department for Work and Pensions commented that Child Disability Living Allowance aims to assist with the additional costs of caring for a seriously ill or disabled child. They acknowledged the rising demand and stated that additional case managers have been trained to handle claims effectively. The department also highlighted reforms to Special Educational Needs designed to ensure children receive appropriate support early on.