DWP’s New Universal Credit Rule Could Slash £100 Weekly from Young Claimants

By: jack martin

On: Monday, June 16, 2025 7:53 AM

What Changes Are Proposed? LCWRA (Limited Capability for Work and Related Activity) is an extra payment in Universal Credit, which is given to those young people who cannot work due to health reasons. It is about £390.06 per month, i.e. about £90 per week. The DWP is now planning to stop this extra payment for young people between the ages of 16‑21.

How Many Will Be Affected?

According to Disability Rights UK, about 1,10,000 young people may be affected by this change. Its purpose is to motivate young people towards work. But such changes can prove to be very dangerous for this group of people with disabilities, because they have less or difficult ability to work.

DWP’s Reasoning Behind This

The DWP wants more and more young people to join the economy. Especially those who are neither studying nor getting a job (NEET) – these changes will affect them.

They believe that removing LCWRA will systematically encourage young people into work. But the problem is that this change is being applied to everyone in a one-size-fits-all way. For young people with poor health, mental instability, or long-term illnesses—this change will only lead to conflict in the workplace.

Who Exactly Will Be Affected?

Disabled Young People Aged 16-21

People who are unable to work or only working part-time. Removing LCWRA will cause them to lose £97 a week.

Students Over 19 Who Are Disabled

Full-time students are not usually entitled to Universal Credit. But disabled students are an exception, especially after 19. Without LCWRA, their housing, transport and education costs will be hard to cover.

Families

When a disabled child over 19 starts to stand on their own, financial support from the family will start to decrease. Family budgets will be affected on a daily basis.

DWP's New Universal Credit Rule Could Slash £100 Weekly from Young Claimants

Accurate Assessment of Financial Loss

ViewCurrent CreditProposed CreditReduction in Daily Earnings
Disabled youth (16–21)£170£73£97
Disabled students (19+)£102.25£73£29.25

A reduction of £97 here will reduce the aid by about 57% every week. In such a situation, how will the expenses of important needs like rent, food, medicines be met? This financial pressure can prove to be fatal.

Impact on Both Part-Time Work and Studies

This scheme will have an adverse effect on those who are anyway meeting their expenses by working limited hours or studying. Due to the reduction in LCWRA, young people may be forced to leave work and may also leave their studies midway. This will affect their future life, and they may also be left without work.

Read more: SNAP Benefits in June 2025 for Married Couples: Dates & Maximum Payout

Campaign and Opposition

Organizations like Disability Rights UK, Special Needs Jungle, Contact are strongly opposing this change. They say that:

  • This change is linking disability and NEET together.
  • Without transition assistance, people will fall economically.
  • Social inequality will increase.

They believe that the policy is not fair and has been made without consultation.

They are trying to get the government to withdraw the scheme through online open letters, petitions, messages to politicians etc.

Impact on Family Budget

This change on disabled youth can completely upset the financial balance of the household. They and the family will become more dependent on local support, charity grants or other resources. As a result, the path towards further self-employment and self-reliance may stop.

What Is Lacking in the Policy?

  • No individual health assessment
    The same rule applies to everyone – both those with good health conditions and those who have lost the ability to work are put in one group.
  • Working capacity is not assessed properly
    Realistic employment opportunities for those people are not assessed.
  • Particular impact on poor and vulnerable groups
    Such as young people with disabilities, children in school, residents in small households who are already struggling.
DWP's New Universal Credit Rule Could Slash £100 Weekly from Young Claimants

What Improvements Are Needed?

If this policy is to be implemented, the following are suggested:

  • Appeal system based on individual health circumstances
  • Overpayment allowances linked to progressive employment or education
  • Consultation with local policy-makers and those affected
  • Short-term medical support
  • Partnerships with labour and social organisations

Conclusion

The DWP’s proposed change is likely to be met with distrust, as it cuts off support for vulnerable youth. The number of people affected financially is huge and the quality of life of affected families will be deeply affected.

Not only is government policy being questioned on this issue, but society is also watching closely. If we really want fair, human-centred change, a human approach is an urgent need.

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