DWP Universal Credit Health payment for young people NEETs, Digi Mart USA News (United Kingdom): Officials have been warned that a Department for Work and Pensions benefit payment received by 260,000 young people across the UK “must be fixed” ahead of a significant new report due within days. Senior Labour figure Alan Milburn is set to present recommendations to Prime Minister Andy Burnham on how to address the issue of one million young people not in education, employment or training (NEETs).
The publication, which according to reports could result in PIP and Universal Credit being cut or replaced, is expected to be delivered to Downing Street next week. The Resolution Foundation, an organisation with strong ties to Number 10, has issued an update on the matter.
In the update released on Wednesday, the Resolution Foundation said: “Much of the attention on the final report will be on whether benefit support for young people is cut. But in our view the first thing to solve is the ‘left alone’ approach of the current benefit system.”
The foundation said the 260,000 young people currently receiving Universal Credit Health (UCH) have no requirements to engage with support to help them move closer to work, education or training. “This must be fixed, but not through more ‘work first’ conditionality that pushes unemployed recipients to take any available job as quickly as possible,” it said.
Instead, it called for a “career start” approach of permanent, positive and personalised employment support that young benefit claimants are required to engage with.
The Universal Credit Health component is an additional Department for Work and Pensions payment for people living with a health condition, disability or long-term illness. It can provide people on Universal Credit with an extra £217.26 a month if they have a health condition or disability, although the figure can be higher depending on the severity of the condition.
The Resolution Foundation wields considerable influence over policy and politics in the UK. Recent former members include current pensions minister Torsten Bell, Treasury minister Dan Tomlinson and housing minister Matthew Pennycook.
Former senior cabinet minister David Willetts serves as the foundation’s president.
The Financial Times recently reported that Mr Milburn is thought to be preparing to recommend that Universal Credit and PIP potentially be replaced for NEETs. In calling for increased funding for further education, the foundation asked whether this could be funded by a “tough love” approach of lower benefit entitlement.
It noted that the total benefits bill for young people is £8.1 billion, and that receipt of UCH and/or Personal Independence Payment (PIP) currently protects 120,000 young people from poverty.
The foundation also said that recent research found around one-in-five young people currently receiving PIP did not experience additional costs, suggesting savings can be found, though it said that is more a question for the upcoming Timms Review. The Timms review is examining the future of PIP, and its co-chair Sir Stephen Timms said in an interim report that the benefit was “no longer fit for purpose”.
