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DWP set to cut Universal Credit from 66,000 young disabled people – including veterans

Steve Topple by Steve Topple
31 May 2025
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Labour’s plans for the Department for Work and Pensions (DWP) will see 66,000 chronically ill and disabled people under the age of 22 lose £416 a month from their Universal Credit. Shockingly, for a government so concerned with with ‘strengthening our armed forces‘, this will include military veterans.

DWP cutting young people’s Universal Credit

As the Canary previously reported, it is freezing chronically ill and disabled people’s Limited Capability for Work and Work-Related Activity (LCWRA) elements of Universal Credit, at £97 a week – and reduced them to £47 a week for new claimants – with only people with the most severe conditions able to apply for LCWRA.

Crucially, people under the age of 22 will no longer be able to claim these top-ups at all under Universal Credit at all.

The Royal British Legion has been vocal in its disapproval, warning that delaying access to this DWP health element could leave Early Service Leavers and those medically discharged facing hardships during what they describe as a “vulnerable period” of readjustment.

The charity has echoed sentiments voiced by Sasha Misra, head of policy at Help for Heroes, who stressed that a significant portion of veterans live with complex, lifelong conditions and that DWP reforms must not exacerbate their struggles. Misra articulated a call for a compassionate welfare system, one that provides support for veterans striving to reintegrate into civilian life instead of viewing them as burdens on the state.

In parliament, Labour MP Anna Gelderd raised pointed questions about the likely repercussions of these welfare reforms. In response, governmental assurances were made regarding consultations with armed forces groups to potentially mitigate adverse effects.

Veterans hit hard by successive governments

DWP minister Stephen Timms indicated that a dedicated consultation event for stakeholders from the Armed Forces would soon take place, hinting at a willingness to engage directly with the veterans’ community. Yet many viewed this as inadequate in the face of immediate and pressing needs.

Recent studies have illustrated a tarnished relationship between military veterans and the DWP benefits system. Findings highlight the numerous obstacles veterans encounter during assessments, with many dealing with mental health issues that are frequently minimised or misconstrued by assessors.

This landscape paints a troubling picture of a welfare system that is not only dysfunctional but one that misrepresents the very individuals it is meant to serve.

Moreover, a survey conducted by Bolt Burdon Kemp found nearly 74% of military charities feel the government is failing to support veterans. These charities stress the multifaceted challenges ex-service members face as they navigate the choppy waters of civilian life—issues that extend beyond finances to encompass employment, healthcare, and mental wellness.

Of course, these DWP cuts will not only be devastating to young veterans.

Callousness from Labour and the DWP

As the Work Foundation wrote:

Young people are more likely to work in severely insecure jobs with a high risk of falling into economic inactivity due to ill health, and limited progression into secure work.

[They] already face health struggles, particularly in mental health. Resolution Foundation research in 2022 showed that Common Mental Health Disorders (CMD) amongst young people have generally been increasing since the 1990s but began rising most rapidly from the mid-2010s. They also found that a CMD makes it more likely a young person will exit the workforce, and for longer.

Forcing young people with health conditions to choose between poverty or an unsuitable job ignores that the work available to young people may pose additional health risks. Work Foundation research has found that young workers (excluding students) are almost twice as likely to be in severely insecure work with a lack of access to employment rights, unpredictable or low pay, and no contractual guarantee of future hours. Whilst some students may opt in to casual, agency or zero-hours type work to enable them the flexibility to fit around their studies, young workers who aren’t studying are also experiencing this insecurity – suggesting people aren’t entering these jobs through choice.

Our 2024 Stemming the Tide report shows low levels of control over working hours and work conduct are associated with higher health risks and a 3.7 times higher rate of worklessness after a negative health experience. This mirrors findings in the Netherlands which estimated that workers with fixed-term contracts have a 30% higher risk of applying for disability insurance than those with permanent contracts.

Yet Labour seems to be ignoring all this. Throwing young disabled people – including veterans – into chaos is nothing short of cruel and callous by the DWP. You’d think Labour, given it is pandering to the ‘patriotic’ right wing at present, would treat military veterans with more respect. Clearly not.

Featured image via the Canary

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