PIP and Universal Credit cash support could be cut for some under-25s under new proposal

Some under-25s could lose PIP or extra health-related Universal Credit payments under a new proposal published on Wednesday (23 September).

But nothing has changed yet. The proposal comes from the Tony Blair Institute, not the DWP, and no new benefit rules have been announced.

The Tony Blair Institute for Global Change has called for a major shake-up of support for under-25s who have health conditions it considers compatible with work, including anxiety and depression.

What has been proposed?

The Tony Blair Institute published its new report, The Opportunity Bargain: The Hard Choices Britain Can’t Duck on NEETs, on Wednesday, 23 September 2026.

It looks at the growing number of young people aged 16 to 24 who are not in education, employment or training, often shortened to NEET.

The report says almost one million young people are currently in this position.

As part of its proposals, the institute wants the benefits system changed for some under-25s with what it describes as “non-work-limiting” health conditions.

This could include people with conditions such as anxiety or depression.

Under the proposals:

• some under-25s with conditions judged to be compatible with work would no longer receive extra cash support through PIP or the health-related part of Universal Credit
• money would instead be directed towards support such as mental health treatment, skills training and help getting into work
• young people who are able to work, study or train would be expected to take steps towards doing so
• more support would be offered to help young people move into employment, education or training

The report says the benefits system should provide financial protection for people who cannot work while doing more to help those who could work with the right support.

Is PIP changing now?

No.

This is important because some headlines about the report may make the proposals sound like confirmed DWP changes.

The Tony Blair Institute is an independent policy organisation. It can recommend changes to the government, but it cannot change benefit rules itself.

Anyone currently receiving PIP or Universal Credit should continue to follow the existing rules for their claim.

The government is carrying out its own separate review of PIP, known as the Timms Review.

An update published by the DWP earlier this month said its recommendations were still being developed and were not final.

The review also said PIP should remain a benefit that is not based on your income or savings, and should continue to help with the extra costs faced by disabled people and those with long-term health conditions.

Why are under-25s being discussed?

The Tony Blair Institute says 981,000 people aged 16 to 24 are currently not in education, employment or training.

It says around six in ten are classed as economically inactive, meaning they are not in work and are not currently counted as unemployed.

The report also points to the growing number of young people receiving health-related benefits.

It argues that some young people are being given financial support without enough help to get back into education, training or work.

The institute wants more money directed towards treatment and employment support instead.

Would everyone with anxiety or depression lose PIP?

Not under the current system.

PIP is not awarded simply because someone has been diagnosed with a particular condition.

Eligibility looks at how a disability or health condition affects someone’s ability to carry out everyday activities and move around.

The Tony Blair Institute is proposing a different approach for conditions it believes would normally be compatible with employment.

For anything like this to become government policy, the government would need to accept the proposal and change the benefit rules first.

That has not happened.

What has the government said?

A Government spokesperson said the final recommendations from the Timms and Milburn Reviews would help shape future changes to the benefits system. The government also pointed to measures already being introduced to help more young people into work.

The proposals have faced criticism

Mental health charities have previously criticised similar proposals from the Tony Blair Institute.

When the institute suggested earlier this year that certain conditions could be classed as “non-work-limiting”, meaning conditions it believes do not necessarily stop someone working, mental health charity Mind said a person’s diagnosis alone does not show the effect their condition has on their ability to work or live independently.

It argued that people’s circumstances and the severity of conditions can vary considerably.

The Tony Blair Institute says its proposals are intended to help more young people move towards employment rather than remain outside the workforce for long periods.

What happens next?

For now, nothing changes for people claiming PIP or Universal Credit because of today’s report.

The bigger thing to watch is what the government decides to do following its own reviews of disability and health-related benefits.

The Timms Review is expected to publish its final report later this autumn.

We will update this article if the DWP announces any confirmed changes affecting PIP or Universal Credit claimants.