New Work and Pensions Secretary will not rule out tougher universal credit rules

The new Work and Pensions Secretary has refused to rule out tightening eligibility for universal credit, saying welfare reform “is happening all the time”.

Speaking to the BBC, Pat McFadden also did not rule out ending health-related universal credit payments for claimants under the age of 22.

“Look, I’m not ruling anything out. Welfare reform is really important,” he said.

“At the moment, this system is unhealthy for people and in the long run is pushing up the benefits bill because we’re not getting the help to people who could work.”

His comments come after the Government’s decision to abandon proposed changes to personal independence payments (Pip) and universal credit’s health-related benefits.

A review of these payments was launched by disability minister Stephen Timms following the Pip U-turn. However, Mr McFadden said further changes could still happen before the report — which is not due for another year — is handed down.

“Welfare reform is happening all the time. Anyone who looks at the current system shouldn’t conclude that the thing to do is to circle the wagons around it,” he told the public broadcaster.

In early September, Mr McFadden was appointed to lead a new “super ministry”, incorporating the skills remit previously overseen by the Department for Education and focused on economic growth.

But the appointment of a man regarded as the Prime Minister’s fixer has sparked speculation that Sir Keir could be planning another attempt to reform welfare after he was forced to abandon cuts planned earlier this year in the face of a backbench rebellion.

In a call with Department of Work and Pensions staff after his appointment, Mr McFadden focused on the need to ensure young people had the skills they needed to avoid a life on benefits.

Describing this as “an early area of priority for me”, he said the department needed to “ask ourselves some tough questions” about the rising number of young people not in education, employment or training.

He said: “I know that a lot of you are engaged in helping people onto skills courses and helping people onto training courses, but I’m hoping that with the change in the department’s responsibilities, we can really emphasise that more and give ourselves the ability to bring these things together in a new and good way.”

Last week, long-term government borrowing costs reached highs not seen since 1998 amid concern about ministers’ ability to keep the public finances under control and a global bond sell-off.

But yields on 30-year government bonds, known as “gilts”, have since fallen back to last month’s levels.