Burnham Faces Labour Backlash Over Disability Benefit Reform Plans

Andy Burnham is facing opposition from within the Labour party over proposals to reform disability benefits for young people. The plans, currently being developed by his ministers, could see the health element of Universal Credit removed for some individuals under the age of 25. Instead of receiving the current monthly payment of £217, claimants with less severe conditions would be offered intensive support to help them find employment, including subsidized jobs and mental health assistance.

The potential changes echo a past controversy where Labour leader Keir Starmer was forced to abandon planned cuts to disability benefits after a rebellion by his own backbenchers. Labour MP Neil Duncan-Jordan has warned Burnham against making similar decisions, stating that changing eligibility criteria does not alter the reality of disability but rather removes essential support. He cautioned that the party should learn from its previous experiences, urging against repeating Starmer's mistakes.

Rachael Maskell, another Labour MP who opposed previous welfare bill changes, expressed concern that removing the health element of benefits could significantly impact young disabled people who rely on it to cover the increased costs associated with their conditions. While supporting initiatives to help young disabled people enter the workforce, Maskell emphasized the necessity of an adequate safety net to prevent them from falling into poverty if employment is not feasible.

Dr. Sarah Hughes, Chief Executive of the mental health charity Mind, noted that financial insecurity is a major driver of poor mental health, and any reduction in benefits could further jeopardize individuals' wellbeing.

The Department for Work and Pensions has stated it will not preempt the findings of ongoing reviews into the Personal Independence Payment (PIP) system and support for young people not in education, employment, or training (Neets). However, a spokesperson insisted that the government will always ensure a safety net is in place for vulnerable individuals who are unable to work.

Recent research indicates a significant increase in the number of children claiming disability benefits. A report by Policy Exchange found that Child Disability Living Allowance (DLA) claims for under-16s have nearly tripled since 2010, rising from 314,000 to 915,000. Annual spending on these benefits has also surged, reaching £5.3 billion last year and is projected to hit £8.3 billion by the end of the decade. The report attributes this growth, in part, to a rise in claims for mental health conditions, which have increased by over 400,000 since the pandemic. The analysis also noted that awards for mental health claimants are becoming more generous, with a higher proportion receiving the highest care component and the mobility component.

Policy Exchange has suggested that restricting eligibility criteria for Child DLA could lead to savings of £11.9 billion over four years. The Department for Work and Pensions acknowledged the rising demand for Child DLA and stated that additional case managers have been trained to handle claims. They also highlighted reforms to Special Educational Needs aimed at providing earlier support for children and families.