The Department for Work and Pensions (DWP) is being urged to implement tough reforms to Personal Independence Payment (PIP) and the sickness element of Universal Credit, as Andy Burnham is poised to become Prime Minister. A leading think tank, the Centre for Social Justice, recommends that these benefits should be removed for claimants with milder forms of anxiety, depression, or ADHD.
Potential Savings and Reinvestment
According to the Centre for Social Justice, such a move would save £7.4 billion by 2029/30. Of this, at least £1 billion should be reinvested in NHS therapy and DWP employment support to address the root causes of mental ill-health and help people return to work.
Ben Gregg, Senior Researcher at the Centre for Social Justice, stated: "Pat McFadden is saying all the right things about getting young people into work, but the Government must turn warm words into action. Abandoning young people to sickness benefits only increases the isolation feeding their struggles. It is neither kind nor helpful. The Government can and should redirect funding to tackling the root causes of mental ill-health."
Political Context and Milburn Review
The call for reform comes amid reports that Andy Burnham, the Labour MP for Makerfield, could bring back Alan Milburn, a senior figure from the New Labour era, into his new-look government. HuffPost UK has learned that Milburn has held talks with Burnham about his review into record levels of unemployment among 18 to 24-year-olds.
One minister commented: "I can see Alan being brought into Andy’s government. He seems to like what Milburn has been saying about getting young people into work." Another source added: "Andy keeps referencing Milburn in his speeches, and Alan is clearly up for it. It would make sense to allow Alan to drive through his own reforms on youth unemployment as a minister."
Milburn's Action Plan
Mr. Milburn’s action plan on youth labour market inactivity is set to be published in September and has the backing of the likely successor to the prime minister. This was confirmed by Matt Upton, principal adviser to the Milburn Review, who addressed delegates at the launch of Zurich’s Value of Mental Health report.
