Adults under 25 would be barred from claiming two main sickness and disability benefits under proposals drawn up by Alan Milburn, who has been conducting a review into the one million people not in employment, education or training (Neets).
The former Labour Cabinet minister's plans would see young people lose access to the health element of universal credit and personal independence payments (Pip), and instead receive a new youth allowance paid at the standard rate of universal credit.
Milburn admits changes will not be 'pain-free'
Mr Milburn acknowledged that changes to how out-of-work young people are treated will not be “pain-free”, as he accepted some would lose out on financial support under his proposals.
He told The Times: “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.”
New benefits proposed for disabled claimants
Under the plans, employment support would be expanded. 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, while those with disabilities that mean they can never be expected to work would be given a new benefit targeted to a smaller cohort, The Times reported.
Mr Milburn's full review into Neets is expected to be published next week, with Andy Burnham expected to accept its recommendations.
Government welfare reforms planned for 2027
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 – around a million people.
Mr 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. However, 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.”
