2 July 2025
Yesterday (1st July), the Government voted to pass the Universal Credit and Personal Independence Payment (PIP) Bill that will alter the current welfare system.
The Bill passing means that changes to the Universal Credit system will affect new claimants, cutting payments in half from 2026 for people with a limited capacity to work because of a disability or long term sickness. Young people under 22 will now also no longer qualify for the health element of Universal Credit.
The Bill will now move to the committee stage for further scrutiny.
The Government made last-minute concessions to the Bill after concerns were raised by MPs across parties, people with disabilities and the organisations representing them. In recent weeks, and during last night’s debate, those opposing the Bill have highlighted the negative impact cuts to welfare would have on the lives of many disabled people and their families.
What changed in the Bill before it was passed?
Minister for Social Security and Disability Stephen Timms committed to remove clause 5 which would have changed PIP eligibility. Any changes to PIP eligibility criteria will now be delayed until after a full review that Department for Work and Pensions Secretary of State Liz Kendall confirmed would be “co-produced with disabled people, their organisations, clinicians, other experts and MPs.”
What does the Bill mean for young people?
Laura Cunliffe-Hall, Head of Policy and Public Affairs at UK Youth said: “The voices of young people with disabilities must be heard when it comes to decisions that impact so heavily on their future. It is significant that the Government has listened and committed to a full, co-produced review with people with disabilities and the organisations that represent them before making changes to PIP.
“When this year’s Spring Statement announced the planned cuts to welfare reform, our response highlighted that the Government’s own mission to break down barriers to opportunity for young people will not succeed if young people that need support from the welfare system are shortchanged at every turn.
“The opportunities available to future generations of young people with disabilities should not be compromised in the name of minimal public finance savings.
“To close the disability employment gap, the Government must leverage and value the youth sector’s critical role. Youth services bridge skills gaps, support young people with disabilities that are able to work to find and sustain employment, and work closely with other sectors like business to create mutually beneficial opportunities for young people with disabilities to provide pathways into work.
“Consultation with young people to inform the Government’s upcoming National Youth Strategy has highlighted that job security and employment are a source of anxiety for young people. For young people with disabilities, financial insecurity can put them further away from the job market; being unable to afford the equipment, transport and support they need to access and sustain paid work. With the Government now committed to further co-production with people with disabilities, it must recognise and seek to mitigate the financial barriers young people with disabilities face to ensure that welfare reform is not a false economy.
UK Youth will be working closely with our network and the Government to ensure the Government listens to the voices of disabled young people and that the proven employment support role played by youth workers is integrated into the Youth Guarantee.“