Young people could lose access to primary sickness and disability benefits under Government proposals aimed at reducing the welfare bill. Plans put forward by Alan Milburn, who has been leading a review into the one million people not in employment, education or training (Neets), would see adults under 25 stripped of access to the support and instead receive a new youth allowance paid at the standard rate of universal credit.
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The former health secretary acknowledged that the transition would not be "pain-free", but maintained it was the most effective means of helping young people into work and building a "good life". The former Government minister is expected to release his findings on the Neets crisis next week.
He told The Times: "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."
Government plans for 2027 welfare reforms
"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. The approach I've taken on this is to try to define what would give young people the best chance of building a good life, not just over a year or two, but over the course of their lifetimes."
The Government intends to introduce sweeping welfare reforms in 2027 as part of efforts to reduce the 45% of young people who are not in education, employment or training (Neet) – approximately one million individuals. The PM Andy Burnham has stated that an overhaul of the benefits system will require the Government to "invest up front in young people".
Employment support and charity concerns
Under Mr Milburn's proposals, employment support would be widened. He said: "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."
Disability charity Sense said it backs moves to give more young disabled people the chance to enter the workforce while safeguarding those who are unable to do so. However, director of influencing Harriet Edwards warned: "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."