A government-commissioned review is set to recommend significant changes to the welfare system, potentially reducing benefits for some young people. Alan Milburn's year-long report, due to be published on Tuesday, will propose moving under-25s off the main sickness and disability benefits, according to The Times.
Radical Overhaul
Milburn, a former Labour health secretary, was tasked by the government with addressing the high number of 18- to 24-year-olds not in education, employment or training (Neet) - currently one in eight. His plans, he said, would not be "pain-free" and would affect both existing and new claimants.
The report is expected to recommend that under-25s can no longer claim the health element of universal credit or personal independence payment (Pip). Instead, they would receive an allowance at the same basic rate as universal credit. Some could qualify for a new "additional cost allowance" to cover day-to-day costs related to their conditions. However, many claimants would receive less under the proposals, which the government aims to legislate on in the new year.
Investment in Employment Support
Milburn is also expected to call for billions of pounds of investment in employment support for young people, including work placements, job subsidies, and one-to-one advisers. Those with more severe disabilities and unable to work would receive a new benefit at a higher rate.
Speaking to The Times, Milburn said: "Candidly, it could mean that some people will get less financial support at the beginning of their benefit claim than under the current system. But actually, for young people, there's a different debate that we've got to resolve, which is whether the priority is their longer-term life chances or just their immediate shorter-term finances. I think what the current system does is it prioritises the latter over the former. I believe that's the wrong choice and it needs to be the other way around."
Recent ONS data from April to June shows just under one million young people in the UK are Neet, a 3% increase on the same period last year.
Political Reaction
Milburn's recommendations are likely to be backed by Prime Minister Andy Burnham but could prove controversial among Labour MPs, who opposed welfare reform under his predecessor Sir Keir Starmer. The reforms would represent a radical overhaul of Britain's welfare system at a time of heavy political pressure to increase defence spending. If approved, it could take almost a decade for the state to see monetary savings.
The new system "will need significant investment" and would involve "rebuilding the system from scratch," Milburn added. He said that currently "you've got hundreds of thousands of young people stuck in a benefit system that is trapping them in poverty, giving them no prospect of prosperity or a job".
His proposed system would involve an element of carrot and stick, where young people could lose some benefits if they did not engage with extra work support options. "A deal isn't a deal unless there are potential consequences," Milburn said. "Entitlements and responsibilities are two sides of the same coin."
A government spokesperson said: "We will always ensure there is a safety net for the most vulnerable and those who are unable to work. But the prime minister has been clear that we need a wholesale change in the way we support young people to grow up in this country, where we invest in their success rather than paying for failure."
