£1bn welfare reform: concerns raised over impact in Wales

The UK government has unveiled sweeping welfare reforms, including a controversial move to block under-22s from accessing the health element of Universal Credit (UC).

Ministers say this will prevent a direct pathway from education into benefits, but critics warn it could leave young disabled people in Wales without vital financial support.

Work and Pensions Secretary Liz Kendall announced the changes, stating that the system must encourage work while ensuring long-term sustainability.

“We are bringing forward the biggest changes to the welfare system in a generation, ensuring those who can work do work,” she said.

Under the reforms, the Work Capability Assessment (WCA) will be scrapped, a new “right to try” guarantee will be introduced, and Personal Independence Payment (PIP) eligibility will be tightened.

The government is also investing £1bn into employment support to help long-term sick and disabled people back into work.

How will Wales be affected?

Wales is expected to be particularly impacted, with 28% of working-age residents registered as disabled—the second highest proportion in the UK.

Many rely on benefits, with only 50.9% in employment, compared to 61.7% in the South East of England.

The most controversial change—the removal of the UC health element for under-22s—has raised concerns that young disabled people could be left without financial support at a critical stage of their lives.

The government says that savings from this cut will be reinvested into work support and training through a new Youth Guarantee.

First Minister Eluned Morgan has confirmed that she personally raised Wales’ concerns with No. 10 ahead of the announcement.

She acknowledged the anxiety caused by speculation over the past few days but welcomed assurances that the most vulnerable would still be protected.

“I know that there have been people across the whole of Wales who have been very concerned about the speculation that’s been going on over the past few days, and I recognise that concern,” she said.

“That’s why I personally spoke to No. 10 last week, to outline some of our concerns in terms of the potential impact on some of our communities in Wales. And I’m very pleased to see that many of those concerns have been taken on board and that the most vulnerable will continue to be protected.”

Morgan also acknowledged the need for reform, arguing that benefits should not trap people in poverty. “We need to give people a ladder out of benefits and out of poverty. You need to do that through restoring trust and fairness, and I’m glad that that, in particular, will be addressed.”

Ann Davies MP, Plaid Cymru’s Work and Pensions spokesperson, criticised the move, arguing that it punishes young people with disabilities.

“Instead of investing in training and job opportunities for disabled people, the UK government is simply cutting support,” she said.

“This decision could push more young people into hardship.”

The Welsh Government has yet to comment on the impact of the reforms.

[Photo: ©House of Commons]