Around one million young people not in education, employment or training (NEET) could see Universal Credit and possibly Personal Independence Payment (PIP) replaced under proposals reportedly being drawn up by senior Labour figure Alan Milburn.
The plans would create a separate benefits system for these young people, with lower cash payments replaced by more intensive health and employment support. Andy Burnham is said to be on board with the proposals, according to the Financial Times public policy editor Chris Smyth.
Key Recommendation for a Separate System
Mr Smyth said: “The key welfare recommendation is going to be essentially a separate benefits system for young people and the contentious bit of that is they would get less cash in exchange for more intensive health and employment support."
According to Office for National Statistics figures, around one million people aged 16 to 24 were classed as NEET in March 2026, a rise of 89,000 on the previous year. The government is understood to believe that getting younger people into work is more achievable than helping older long-term benefit claimants.
Prime Minister's Call for a New Social Contract
The Prime Minister has also recently called for a "new social contract" for young people, warning that the government cannot simultaneously fund support and benefits for youngsters at the same time.
