The number of young people claiming Personal Independence Payment (PIP) is set to nearly triple to almost one million by 2040, according to Labour Party government figures. The Department for Work and Pensions (DWP) forecasts that the number of claimants aged 16-24 will reach 511,000 this year, 634,000 by 2029-30, and 877,000 by 2040-41. This surge would push the annual PIP bill for this age group to a staggering £9 billion.
Conservative Party Proposes Reassessment
Helen Whately, the shadow work and pensions secretary, announced that if the Conservatives win the next general election, they would “reassess all” sickness benefits for “low-level mental health conditions” to curb the rising welfare costs. Speaking on the Radio 4 Today programme, Whately stated: “Too many people are being written off sick, particularly being written off for lower-level mental health conditions, that is things like anxiety, mild depression and ADHD.”
Former Labour Minister Criticises Welfare System
Alan Milburn, a former Labour health minister, released a landmark report last month criticising the current welfare system. He said it was “giving young people a cheque” but not a chance in life, calling it “a catastrophic failure.” The report highlighted that employers often view hiring young people as a risk because they are unproven, and noted that the “cost and regulatory burden of employing young people has risen” sharply since 2019.
Milburn added: “Every employer that we spoke to raised these issues as real concerns, the minimum wage. No employer really wants to be paying poverty wages to young people, but there is, particularly in low-margin sectors like retail and hospitality, no doubt that these changes have had an impact. So that is something the government really needs to think about. If the priority is to create young people’s jobs, then it’s got to create the right conditions for employers to do so.”
