Adults under 25 would be barred from claiming two main sickness and disability benefits under proposals from Alan Milburn's welfare review, with young people instead receiving a new youth allowance paid at the standard rate of universal credit. The former Labour health secretary acknowledged the changes would not be “pain-free” and that some people would get less financial support at the start of their claim.
Milburn Review proposals
Mr Milburn's plans, reported by The Times, would stop under-25s from claiming the health element of universal credit and personal independence payments (PIP). Those affected would instead receive a new youth allowance paid at the standard rate of universal credit.
He said he would set out a “big rewriting of the welfare system” next week when he publishes the second part of his review, commissioned by former prime minister Sir Keir Starmer. More money would be spent on employment support under the plans.
Reaction to the plans
“I’m not saying that any of this will be easy or that it will be pain-free because it won’t,” Mr Milburn told the paper. “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.”
Under the proposals, employment support would be expanded. “The menu of opportunities has got to increase,” Mr Milburn said. “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.”
Impact on PIP and disability support
Many people receiving PIP would be moved on to a new benefit called the “additional cost allowance” to help with costs relating to their disability. Those with disabilities meaning they can never be expected to work would be given a new benefit targeted to a smaller cohort, The Times reported.
The Government plans to bring forward major welfare reforms in 2027 amid efforts to reduce the 45% of young people who are not in education, employment or training (Neet), around a million people. Prime Minister Andy Burnham has said an overhaul to the benefits system will require the Government to “invest up front in young people”.
Disability charity Sense 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.”
