Andy Burnham is facing a backlash from Labour MPs over proposals to take away a key disability benefit from young people.
His ministers are developing welfare reforms that are likely to include removing the health element of Universal Credit from some under-25s.
Instead of cash payments worth £217 a month, claimants with less severe conditions would receive intensive support to get them into work including subsidised jobs and help with mental health problems.
The Government may also attempt to make major changes to the Personal Independence Payment (PIP) system following two long-awaited reviews.
But the Prime Minister will face opposition from his own backbenchers, just as a rebellion last year forced Sir Keir Starmer to abandon planned cuts to disability benefits and undermined his authority.
Labour MP Neil Duncan-Jordan, who lost the party whip for voting against the welfare bill, wrote on social media on Friday: ‘I wrote to Andy Burnham with Labour MPs last month warning against disability benefit cuts.
Andy Burnham being welcomed back to Westminster by Labour MPs in June
‘Changing eligibility doesn’t change the reality of disability. It just removes support.’
He warned: ‘Getting your fingers burnt means learning the lesson. We shouldn’t repeat Starmer’s mistakes.’
Rachael Maskell, who was also suspended after tabling a key amendment against the welfare bill last year, told the Daily Mail: ‘If young disabled people are living independently, then the health element to address the increased costs of disability will really impact those young people.’
She added: ‘I support the Government’s mission in getting young disabled people into work, included supported work placements, including those with significant health and access needs, but we need to understand that if they cannot there must be an adequate safety net, as young disabled people must not be plunged into poverty.’
Chief Executive of mental health charity Mind Dr Sarah Hughes said: ‘With financial insecurity being one of the key drivers of poor mental health, any cuts to benefits could risk undermining people’s health and wellbeing further.’
The Department for Work and Pensions said it would not pre-empt the findings of the review by Sir Stephen Timms into PIP and the separate report on Neets – young people not in education, employment or training – by former minister Alan Milburn.
A spokesman insisted: ‘We will always ensure there is a safety net for the most vulnerable and those who are unable to work.’
Former PM Keir Starmer (pictured) was forced into a dramatic U-turn by his own Labour MPs in July 2025 over plans to tighten Personal Independence Payment (PIP) assessments
The number of children claiming disability benefits has almost trebled in recent years, according to new research.
A report by Policy Exchange has found that 915,000 under-16s are now receiving Child Disability Living Allowance (DLA), compared with just 314,000 in 2010.
Annual spending for the welfare payments stood at £5.3billion last year, up from £2.3bn in 2019-20, and is forecast to reach £8.3bn by the end of the decade.
The think-tank said that the surge has been driven by new claims for mental health conditions, with 404,000 more since the pandemic.
While claims for other conditions have declined, far more young people diagnosed with learning disabilities, ADHD and behavioural disorder are now receiving the cash support for help with care at home.
The analysis also found that awards for Child DLA are also becoming more generous to mental health claimants.
Since Covid, the proportion receiving the highest care component – now worth £114.60 a week – has risen from 30.5 per cent to 42.4 per cent.
Children receiving the benefit for mental health conditions are also more likely to be given a ‘mobility component’, meant for those who have difficulty walking or need supervision outdoors, worth an extra £80 each week.
Report co-author Jean-André Prager said: ‘Child DLA is now supporting a very different population from the one it was designed for.
‘Of course, disabled children deserve support. But we need to make sure that support is reaching those with the greatest needs and ask whether some of this money could be used more effectively to provide earlier support for children and families.’
Keir Haldane, Research Fellow at Policy Exchange, added: ‘The growth in Child DLA has been striking, both in the number of claimants and in the level of awards.’
It is the latest in a series of recent reports showing how the benefits bill has soared in recent years, piling pressure on the Government to take action.
Policy Exchange said the Government could save £11.9bn over four years by restricting eligibility criteria for Child DLA.
The Department for Work and Pensions said: ‘Child Disability Living Allowance exists to help with the extra costs of caring for a seriously ill or disabled child. We know there is a rising demand for Child DLA, which is why we have trained additional case managers to deal with these claims to a high standard.
‘We have also outlined reforms to Special Educational Needs to ensure every child gets the right support early on, without a fight.
