Under-25s to lose sickness benefits under Milburn welfare plans
Under-25s to lose sickness benefits under welfare plans

Young people under 25 would lose access to main sickness and disability benefits under Government plans to reduce the welfare bill, according to proposals drawn up by Alan Milburn.

Mr Milburn, who has been conducting a review into the one million people not in employment, education or training (Neets), suggests that adults under 25 would instead receive a new youth allowance paid at the standard rate of universal credit.

Transition 'not pain-free'

The former health secretary admitted that the transition would not be “pain-free”, but insisted it was the best way of helping young people find work and build a “good life”. His verdict on the Neets crisis is expected to be published next week.

Speaking to The Times, Mr Milburn said: “Candidly, it could mean that some people will get less financial support at the beginning of their benefit claim than under the current system. But actually, for young people, there’s a different debate that we’ve got to resolve, which is whether the priority is their longer-term life chances or just their immediate shorter-term finances.

“I think what the current system does [is] it prioritises the latter over the former. I believe that’s the wrong choice and it needs to be the other way around.”

Expanded employment support

The Government plans to bring forward major welfare reforms in 2027 amid efforts to reduce the 45% of young people who are 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”.

Under Mr Milburn’s plans, employment support would be expanded. He explained: “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.”

Charity concern over funding

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.”