Milburn Review Expected to Urge Lower Benefits for Some Under-25s
Alan Milburn's government-commissioned review is expected to recommend moving under-25s off the main sickness and disability benefits. He says the plan will not be pain-free and would affect existing and new claimants, while some Labour MPs have voiced concern.
Alan Milburn, a former Labour health secretary, is expected to recommend that some under-25s should get less in sickness and disability benefits, in a government-commissioned review of the UK welfare system. His year-long report is due to be published soon.
He wants to cut the number of young people classed as "Neet": not in education, employment or training. One in eight 16 to 24 year-olds in the UK falls into that group.
Milburn said his plans would not be "pain-free". They would affect both existing and new claimants.
What the review is expected to propose
Under-25s would no longer be able to claim the health element of universal credit or personal independence payment (Pip), a benefit for people with long-term health conditions or disabilities. They would instead receive an allowance at the same basic rate as universal credit.
Some could qualify for a new "additional cost allowance" covering day-to-day costs linked to their conditions. Many claimants would still receive less overall. People with more severe disabilities who cannot work would get a new benefit at a higher rate.
Milburn is also expected to call for billions of pounds in extra employment support. That would include work placements, job subsidies and one-to-one personal advisers.
The system would carry some conditions. Young people could lose part of their benefits if they did not take up the extra work support. "A deal isn't a deal unless there are potential consequences," Milburn said.
Cost and timing
Milburn acknowledged the change could cost some people money at first. "Candidly, it could mean that some people will get less financial support at the beginning of their benefit claim than under the current system," he said.
He argued the current system puts short-term finances ahead of young people's longer-term life chances. "I believe that's the wrong choice and it needs to be the other way around," he said.
The new system "will need significant investment" and would mean "rebuilding the system from scratch", Milburn said. If his recommendations were approved, it could take almost a decade for the state to see savings.
Just under one million young people in the UK are Neets, according to Office for National Statistics data for April to June. That is a rise of 3% on the same period last year.
Political reaction
Prime Minister Andy Burnham is likely to back the recommendations, and the government plans to take them into legislation in the new year. They could prove controversial among Labour MPs, who opposed welfare changes last year under Sir Keir Starmer.
Labour backbencher Bell Ribeiro-Addy said she was "not sure" she could vote to cut entitlements for existing claimants. She argued that Pip often helps disabled people already in work to live independently.
"I don't think you get a disabled young person into work by taking away the money that helps them get into work," she said.
Housing Minister Matthew Pennycook said he could not confirm what the report contains.
