The Government is considering major welfare changes for under-25s, including replacing disability payments with a multibillion-pound “Back to Work” scheme, it has been reported.

Reforms could also include replacing PIP in an effort to cut the UK’s benefit bill, which stands at over £300bn but is forecast to reach £407bn by the end of the decade, reports.

Campaigners and academics have warned that further cuts might not make significant savings and could push more families into poverty – and further from the job market – after some disability payments were already halved.

It comes only a year after a major rebellion, stopped by over 80 Labour MPs, forced Sir Keir Starmer to withdraw his attempt at reforming the welfare system.

But with rising numbers of young people out work, education or training, Work and Pensions Secretary Pat McFadden told rebel MPs that reform is needed.

“Young disabled people are often told the kindest thing that Government can do is sign them off and write them off. Well, not any more,” he said at the party’s conference.

Here are the three major disability changes that could be announced.

Removal of universal credit health element for under-25s

The first proposal being discussed is removing the health element of universal credit for under 25s and replacing it with an intensive “Return to Work” scheme.

According to reports, this payment could be replaced with subsidised jobs for younger people, targeted “Back to Work” schemes and mental health support as Andy Burnham tries to reduce the UK’s one million young people not in education, employment or training (Neet).

Around 184,000 18- to 24-year-olds currently qualify for an additional monthly payment due to a health condition or disability that severely affects their ability to work, with no requirement for those who qualify to look for work.

The payment has already been cut by 50 per cent for all new claimants from next April, down from £429.80 to £217.26 a month. Officials are considering looking at removing the payment from existing claimants as well as new ones.

But Chris Grover, professor in social policy at Lancaster University, said that the cuts might not have the intended effect.

He told The i Paper: “For young disabled people, it might be that there are barriers in terms of employers being willing to hire people with disabilities or chronic conditions.

“So there’s a set of barriers to people being able to access work, but often that gets interpreted as people not wanting to go to work.

Instead, Grover said that what prevents young people working are the jobs available in their area and other issues including childcare.

Replacing the personal independence payment (PIP)

The second possible change is replacing PIP (four million under-25s currently qualify).

PIP is a non-means-tested UK benefit that helps with extra living costs for those with a long-term physical or mental health condition or disability that prevents them completing daily tasks.

Alan Milburn, a former cabinet minister conducting a report into Neets, found that nearly half of PIP claims among young people are for autism and ADHD.

According to reports, the Government is also broadly considering a new set of eligibility criteria that could apply to all claimants, or those below an age bracket such as 50 or 60.

Those with the most severe conditions would not be affected by changes.

Cuts to the Motability scheme

Ministers are also considering cuts to the Motability scheme, which allows PIP claimants to use part of their allowance to lease a brand-new car, wheelchair-accessible vehicle, scooter or powered wheelchair.

The scheme allows disabled people to lease their cars for three years.

The Government already cut tax breaks worth £300m in July but a number of valuable exemptions still apply to the scheme, such as VAT not applying to the portion of the lease paid via PIP.

The Government says it will wait for the outcomes of ongoing reviews into PIP payments and youth unemployment by the Timms and Milburn reviews.

McFadden has painted the reforms as a “moral crusade”, stating that not acting would be financially unsustainable and worse for young people.

What the experts say

Academics and charities have expressed concern that cutting benefits can make it harder for people to enter the workforce, by placing additional pressure upon them.

Professor Grover added: “Cuts to benefits will undermine people’s ability to be able to fully participate in those activities that are supposed to help them into work.

“That isn’t to say that support and training shouldn’t be provided. It should be fully funded, but not through the cuts to benefits.”

Katherine Hill, an academic based in the Univesity of Loughborough’s Centre for Research in Social Policy, said the work offered must be “appropriate, sustainable and involve employers buy-in”.

James Taylor, Director of Strategy at disability equality charity Scope said: “Too many are being written off early with little support. But more employment support and cutting people’s income are not the same thing.

“Removing the limited financial help young disabled people receive risks plunging many more into poverty rather than helping them into jobs.

“We know disabled young people have the ambition and talent to build successful working lives.”

A Government spokesman said: “We will be bringing forward a comprehensive package of support and reform to tackle the scandal of a million young people not in education, employment or training.

“The details are yet to be decided, but we are committed to enabling work and opportunity, while always protecting those unable to work.”