Adults under 25 could be barred from claiming two main sickness and disability benefits under proposals being considered by Andy Burnham's government. The benefits believed to be targeted are the health element of Universal Credit and Personal Independence Payments (PIP).
Former Labour health secretary Alan Milburn is set to publish his review into young people and work, covering the welfare system, with recommendations to the Government due in the coming weeks. He was commissioned by former prime minister Sir Keir Starmer to carry out the review into youth unemployment.
New youth allowance proposed
It has been reported by The Times that under his plans, adults under 25 would instead receive a new youth allowance paid at the standard rate of Universal Credit. Mr Milburn said he would set out a 'big rewriting of the welfare system' next week.
He has said that some out-of-work young people will lose out on financial support under his plans and warned that changes coming to the treatment of those Not in Education, Employment, or Training (Neets) will not be 'pain-free'. More money is set to be spent by the government on employment support, with its outline to be shared when Mr Milburn publishes the second part of his review.
Warnings over financial support
Mr Milburn told the paper: "I'm not saying that any of this will be easy or that it will be pain-free because it won't.
"You know, candidly, it could mean that some people will get less financial support at the beginning of their benefit claim than under the current system."
The government is planning to bring major welfare reforms in 2027. The changes are being made in an effort to reduce the 45 per cent of young people who are not in education, employment or training, which is around a million people.
Employment support expansion
According to Prime Minister Mr Burnham, an overhaul to the benefits system will require the government to 'invest up front in young people'. Employment support would be expanded under Mr Milburn's plans.
"The menu of opportunities has got to increase. They'll have a personal adviser, they'll be coached all the way through. The adviser will stick with them until they have found a job or an apprenticeship or college place," Mr Milburn said.
Many of those who are receiving PIP will likely be moved on to a new benefit called the 'additional cost allowance', which will help with costs relating to their disability. Those with disabilities that mean they can never be expected to work would be given a new benefit targeted to a smaller cohort.
Charity raises concerns
Sense, a disability charity, said it supports efforts to give more young disabled people the opportunity to work while protecting those who cannot.
Director of influencing Harriet Edwards said: "We're deeply concerned that, if these proposals are taken forward without proper funding for specialist employment support alongside welfare changes, some young disabled people could lose out.
"We need to understand who will qualify for the new support, who risks missing out, and what practical, accessible help young disabled people will actually receive to find work.
"We know many of the families we support are deeply anxious about what these changes could mean for them, and we urge the Government to provide clarity as soon as possible."
