“Candidly, it could mean that some people will get less financial support at the beginning of their benefit claim than under the current system,” Alan Milburn told The Times.
Young people in the UK could face reductions in their benefits under a radical welfare overhaul recommended by a government-commissioned review. Alan Milburn’s year-long report, published on Tuesday, recommends moving under-25s off the main sickness and disability benefits, The Times reported.
Milburn, a former Labour health secretary who served as a Labour MP from 1992 to 2010, was tasked by the government with helping reduce the number of 18- to 24-year-olds in the UK who are not in education, employment or training, known as Neets.
Office for National Statistics (ONS) data from April to June suggests just under one million young people in the UK are Neets, representing a rise of 3% on the same period last year. Milburn said on Wednesday night that his plans would not be “pain-free” and would affect both existing and new claimants.
Under the recommendations, under-25s would no longer be able to claim the health element of universal credit or personal independence payment (Pip). Instead, they would receive an allowance on the same basic rate as universal credit.
Some individuals could be eligible for a new “additional cost allowance” to cover day-to-day costs related to their conditions, while those with more severe disabilities who are unable to work would receive a new benefit paid at a higher rate. Yet, the upcoming proposals will see numerous recipients drawing reduced payouts as the government prepares to turn the scheme into statute early next year.
Furthermore, the report proposes injecting billions into expanded work assistance for youth, featuring job subsidies, placements, and dedicated individual guides.
Milburn added that the new system “will need significant investment” and would involve “rebuilding the system from scratch.” 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.”
The proposed system includes an element of requirements where young people could lose some of their benefits if they do not engage with extra work support options.
“A deal isn’t a deal unless there are potential consequences,” Milburn said, adding that “Entitlements and responsibilities are two sides of the same coin.” He also defended the trade-offs by stating: “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.”
While Prime Minister Andy Burnham is expected to endorse the suggestions, they might spark debate among Labour parliamentarians who resisted social security changes during Sir Keir Starmer’s tenure.
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.”
Disability charity Sense said that it supports efforts to give more young disabled people the opportunity to work while protecting those who cannot, though it said that many young people remain “anxious about what these changes could mean for them, and we urge the Government to provide clarity as soon as possible.”
