DWP Urged to Withdraw Universal Credit, PIP for 1.1M People

URGENT UPDATE: The Department for Work and Pensions (DWP) faces intense pressure to withdraw Universal Credit and Personal Independence Payment from individuals with specific mental health conditions. The Centre for Social Justice (CSJ) has raised alarms that ignoring potential savings identified in the Timms Review will escalate welfare spending, leaving millions dependent on benefits.

According to the CSJ’s latest recommendations, the DWP should eliminate UC Health and PIP for those suffering from milder forms of anxiety, depression, or ADHD—affecting an estimated 1.1 million people. The suggested policy shift could lead to a staggering £7.4 billion in savings by 2029/30, with at least £1 billion earmarked for bolstering NHS Talking Therapies, social prescribing, and employment support programs.

The DWP is also encouraged to introduce a Future Workforce Credit, providing tax incentives for employers who hire young individuals not in education, employment, or training (NEETs). This initiative could significantly aid 120,000 young people in finding jobs while generating an impressive £765 million in tax and welfare savings.

In addition to these recommendations, the DWP is advised to establish a new Work and Health Service funded by £300 million in savings. This service would aim to enhance workplace adjustments and relieve the burden on general practitioners concerning fit notes.

Joe Shalam, Policy Director at the CSJ, stated, “

Everyone can see the system is failing. 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.

Furthermore, there are renewed calls for the reintroduction of regulations that would require employers to advertise job openings to UK residents before using the visa system, as reported by Birmingham Live.

This developing story highlights critical shifts in welfare policies that could drastically impact millions. The urgency of these changes is clear, as the DWP’s response could define the future of welfare in the UK. As discussions continue, many are left wondering how these recommendations will shape the landscape of employment and welfare support in the coming years.

Stay tuned for more updates as this story unfolds.