Downing Street is considering whether plans to replace key disability benefits for people under-25 with work and training should be expanded to older age groups. This potential move risks reigniting Labour tensions over welfare changes.
Prime Minister Andy Burnham and other cabinet ministers are examining the application of a "participation first" approach to all working-age individuals. This would involve investing billions more in support to help people enter the workplace, alongside potential cuts or removal of some disability benefits.
The government is preparing to accept recommendations next week from its adviser, Alan Milburn, regarding an overhaul of the benefits system for young people. Milburn's report will propose that under-25s receive training and support instead of the universal credit health element. Under these plans, young people with disabilities would also lose their personal independence payment (Pip) but could apply to a local fund for specific short-term expenses and equipment, rather than an ongoing payment. Entitlements for those with the most extreme needs who cannot work would be protected.
Cabinet ministers recently considered whether these arguments could be applied more broadly to over-25s. An intervention from the Prime Minister or Pat McFadden, the work and pensions secretary, to advocate for these principles across all ages could happen within weeks of both the Milburn review and the Stephen Timms review into disability benefits being published.
Some government sources believe the idea of expanding welfare changes to over-25s might not proceed due to potential backlash from parts of Labour. Other sources suggest Milburn has successfully argued for system change and public support for his efforts. Burnham has stated the changes would not be "crude cuts," though some backbenchers remain sceptical about the impact on young disabled people.