Young people would no longer be entitled to the main sickness and disability benefits under a radical overhaul of the welfare system that would see a reduction in financial support for some, reports BritPanorama.
Former health secretary Alan Milburn has proposed a “big rewriting” of the system as part of his review to be published on Tuesday, admitting the road will not be “pain-free” in an interview with The Times.
The chair of the Social Mobility Foundation spent the last year reviewing the one million people aged 18-24 who are not in education, employment or training. He stated that reforming the system would be the best way to offer young people a chance of finding work.
His plan would see young people no longer able to claim the two main sickness and disability benefits: the health element of universal credit and the personal independence payment (PIP).
Instead, they would transition to a new “youth allowance,” which would be paid at the same level as the standard rate of universal credit.
For those receiving PIP, intended for individuals with disabilities, they would be moved to a new “additional cost allowance” to cover day-to-day expenses related to their conditions.
Individuals unable to work due to their disabilities would be granted a new benefit at a higher rate.
In his interview, Milburn acknowledged, “I’m not saying that any of this will be easy or that it will be pain-free because it won’t.”
He elaborated that this might result in some individuals receiving less financial support at the start of their benefit claim compared to the current system. However, he questioned whether the priority should be on young people’s long-term life chances rather than immediate financial gains.
Milburn emphasised the goal of affording young people a better opportunity for a prosperous life rather than simply improving their short-term financial situation.
The government plans to implement major welfare reforms in 2027, aiming to reduce the 45 percent of young people who are classified as not in education, employment, or training (NEET)—approximately one million individuals.
Prime Minister Andy Burnham noted that an overhaul of the benefits system would require substantial upfront investment in young people.
Under Milburn’s proposals, expanded employment support would also be included. “The menu of opportunities has got to increase,” he told The Times. “They’ll have a personal adviser, they’ll be coached all the way through. The adviser will stick with them until they secure a job, apprenticeship, or college placement.”
Disability charity Sense expressed support for initiatives that aim to provide more opportunities for young disabled individuals while safeguarding those unable to work.
However, Director of Influencing Harriet Edwards cautioned that, “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.”
She urged for clarity on who would qualify for new support, who might miss out, and the accessible assistance young disabled people would receive to find work, noting that many families are deeply anxious about potential implications of these changes.
