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“We must invest in young lives, not take away from those most in need”

  • Published on 19 March 2025
  • Written by Eamon McCrory

Our CEO shares how the government’s new welfare reforms could impact young people with mental health conditions.

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The Secretary of State for Work and Pensions, Liz Kendall, has announced (18 March 2025) the most significant reforms to the welfare system in a generation.

These reforms aim to reduce the national benefit bill by up to £5 billion over the next decade, through a number of measures including tightening the eligibility criteria for Personal Independence Payments (PIP). The government has said that over £1 billion a year will be invested to support more people into work and will roll out a “right to work” scheme for people on capacity benefits to try a return to work without risking losing their entitlements.

There are estimated 987,000 16–24-year-olds in the UK not in education, employment or training, an increase of 241,000 since September 2022 .1 In announcing these reforms, the government highlighted an increasing number of young people citing sickness as a barrier to work, and specifically linked this to an increase in mental health conditions.

Professor Eamon McCrory, CEO of Anna Freud, said:

“The benefit cuts announced yesterday are deeply troubling and will impact vulnerable people across the UK, including potentially thousands of young people with mental health conditions.

“We recognise that there is an urgent need to support young people into employment, with the latest figures suggesting one in eight people aged 16 to 24 are not in work, education or training.2 It is vital that this generation is supported to thrive and achieve their full potential, and we’re pleased to see the government reiterate its commitment to improving young people’s access to mental health support.

“However, these extensive welfare cuts – without investment in additional support – have the potential to have a significant and detrimental impact on the mental health and long-term outcomes of young people who are already struggling.”

“What is needed is an increased focus on early intervention and prevention to not only ensure children and young people get the right support at the right time but also make significant savings. It is 100 times cheaper to treat a young person in the community than as an inpatient so increased funding for assets like early support hubs should be a priority.3 It is also vital that solutions are evidence-based and guided by children and young people. We must invest in young lives, not take away from those most in need.”

Find out more

Read our Thinking differently manifesto which brings together young voices, scientific insight, research and over 70 years of expertise from Anna Freud to call for an increased focus on early intervention and prevention to close the gap in children and young people’s mental health.

We are also supporting the Future Minds campaign, which is calling for the Government to deliver urgent reform to boost children and young people’s mental health services.

Notes:

  1. ONS. (2025). Young people not in education, employment or training (NEET), UK: February 2025. https://www.ons.gov.uk/employmentandlabourmarket/peoplenotinwork/unemployment/bulletins/youngpeoplenotineducationemploymentortrainingneet/february2025 [Accessed 19 Mar. 2025].

  2. ibid

  3. Northover, G. (2021). Children and Young People’s Mental Health Services GIRFT Programme National Specialty Report. https://gettingitrightfirsttime.co.uk/wp-content/uploads/2025/01/CYP-Mental-Health-National-Report-22-11h-FINAL.pdf [Accessed 28 Jan. 2025].