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DWP Faces Pressure to Restrict Universal Credit for 662,000 Young Claimants Amid Rising Dependency

The UK is witnessing a growing concern as more than one in ten individuals under the age of 30 in 41 regions are signed off work with no requirement to look for employment. These young claimants, amounting to 662,000, receive Universal Credit (UC) benefits of up to £420 monthly.

Overall, around 2.8 million people, including these young adults, are not working due to health conditions—an increase of 800,000 since 2019. Many of these conditions are often treatable and compatible with employment, yet the current system is perceived to foster long-term benefit dependency rather than encouraging recovery and reintegration into the workforce.

Dr Charlotte Refsu, a former GP and health policy expert, criticized the system’s failure to distinguish between genuinely work-limiting illnesses and those that are manageable. She emphasized that without timely treatment and clear guidance, individuals remain on benefits needlessly, which harms both their health and the broader economy.

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Adding to the critique, former Conservative Party leader Sir Iain Duncan Smith highlighted that many claims related to depression and anxiety may improve through engagement in work. He described the current welfare setup as “still mad,” underlining the need for reform.

In response, the Department for Work and Pensions (DWP) stated it is investing £2.5 billion to create “one million opportunities” aimed at helping young people transition from welfare dependency to employment.

The top areas with the highest rates of under-30s signed off from work include:

  1. Hartlepool – 15.4% (2,087 claimants)
  2. Blackpool – 14.3% (2,696 claimants)
  3. Thanet – 13.7% (2,232 claimants)
  4. Redcar and Cleveland – 13.5% (2,245 claimants)
  5. North East Lincolnshire – 13.4% (2,632 claimants)

Other notable regions include Rotherham, West Dunbartonshire, North Ayrshire, Great Yarmouth, and Knowsley, each reporting rates above 12%.

This data highlights an urgent need to reassess the Universal Credit framework to better support young people in overcoming health barriers and encouraging their return to work.

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