Young people in Britain who have grown up or fallen into long spells without work have long been caught between a benefits system designed for other purposes and a labour market that offers them little foothold. A review led by Alan Milburn, the former health secretary, now argues that the system should be rebuilt from its foundations, trading the immediate comfort of existing payments for the slower promise of work and a life not defined by a claim. It is a choice between what a young person receives this month and what they might become over the decade, and the proposal makes plain which sid
Youth Review Would Strip Young People of Main Disability Benefits and Rebuild Welfare 'From Scratch'
Hundreds of thousands of young people could face reduced financial support at the start of their benefit claims, with existing claimants also affected.
"Cost-free" is fatuous: the savings only come after the spending.
Mark
What's actually being proposed here?
Mimi
Young people would lose PIP and the health element of universal credit. They'd move to a youth allowance paid at the standard universal credit rate, and many other PIP claimants would go to a new additional-cost allowance.
Mark
Why does it matter that it covers existing claimants?
Mimi
Milburn said limiting it to new claimants wouldn't be right, given the hundreds of thousands he says are stuck in poverty. But it means taking away a current entitlement, which is the politically hard part.
Luke
Worth noting this is a pre-publication report. The review hasn't been released, so the details come from an interview and what's "expected".
Mark
He's fairly open about the downsides, isn't he?
Mimi
Yes. He said some people may get less support at the start of a claim, and that it won't be pain-free or cost-free.
Luke
But how many people lose out, and by how much? The source gives no figures. "Hundreds of thousands" describes young people in the system, not those who'd be worse off.
Mark
And the money?
Mimi
The Telegraph reported a recommended £6bn extra on getting people into work. Milburn says savings come later, not in the short term.
Luke
Which sits awkwardly with pressure to cut welfare spending. Nothing here says when any return would arrive.
Mark
Is there political context?
Mimi
Last year's £5bn cuts plan prompted a rebellion by more than 80 Labour MPs. Burnham has refused "crude" cuts.
El Pulso
- Young people would lose access to PIP and the universal credit health element, shifting onto a new youth allowance that pays only the standard rate.
- Existing claimants would be pulled into the changes too, a politically explosive step after last year's Labour rebellion over benefit cuts.
- Milburn concedes some people could receive less support at the start of their claims, and that no short-term savings will come from the plan.
- A promised £6bn employment package and sanctions for young people who disengage from support are meant to steer the reform toward work.
- With welfare spending on course to climb toward £407bn, Labour, the Conservatives and Reform are all racing to claim the mantle of reform.
Young people in Britain who have grown up or fallen into long spells without work have long been caught between a benefits system designed for other purposes and a labour market that offers them little foothold. A review led by Alan Milburn, the former health secretary, now argues that the system should be rebuilt from its foundations, trading the immediate comfort of existing payments for the slower promise of work and a life not defined by a claim. It is a choice between what a young person receives this month and what they might become over the decade, and the proposal makes plain which side it favours, even as it admits the cost will fall on some before it returns to others.
A review due later this month is expected to propose something unusual for British welfare policy: that young people should no longer be able to claim the main disability benefits. Alan Milburn, who served as health secretary under Tony Blair, has spent time examining the youth worklessness crisis, and he believes the system should be rebuilt from scratch. He has been candid that the changes will not be painless.
Under the plans, young people would lose personal independence payments and the health element of universal credit. In their place would come a youth allowance paying the standard universal credit rate. Many other PIP claimants would move to a new additional-cost allowance, which would not be means-tested and could be claimed by people who do not work, though fewer people would qualify than under the present system. Those with the most serious conditions, judged unable to work, would be protected.
The hardest part, Milburn admits, is that the changes would apply to people already receiving support, not just new claimants. He considered limiting them to new applicants but decided that would be wrong, given the hundreds of thousands of young people he sees trapped in a system that offers no route to a job. He was equally direct about the money: some people may receive less at the start of a claim than they do now. The choice, he argues, is between immediate finances and long-term life chances, and the current system has leaned too far toward the former.
The proposals would come with an employment package that could cost billions, alongside a plan to make young people who do not engage with support lose some benefits. Milburn insists the reform will not cut the bill in the short term, since getting people into work and paying tax requires upfront investment. The political terrain is treacherous, with welfare spending rising sharply and Labour under pressure, while the opposition has its own competing savings promises. What will matter most is how the package is costed and how Labour MPs respond to a plan that would change entitlements people already hold.
A review due to be published later this month is expected to propose that young people no longer be allowed to claim the main disability benefits. Alan Milburn, the former health secretary who served under Sir Tony Blair, has been examining the youth worklessness crisis, and he is expected to say the benefits system should be rebuilt "from scratch". In an interview with The Times, which first reported the plans, he said the changes will not be "pain-free".
Under the proposals, young people would lose access to personal independence payments, known as PIPs, and to the health element of universal credit. In their place would be a new "youth allowance", paying the same amount as the standard rate of universal credit. Many other PIP claimants would be moved to a new additional-cost allowance, meant to help cover the extra costs of managing a condition. That allowance would not be means-tested, and people who do not work could claim it, but fewer people would be entitled to it than under the current system.
The changes would apply to existing claimants as well as new ones. Those with the most serious conditions, who are judged unable to work, would be protected. Milburn is also expected to call for immediate mental health support for people with mild attention deficit hyperactivity disorder, autism and anxiety.
Milburn acknowledged that applying the changes to current claimants is the harder political choice. He said he had considered limiting them to new claimants but concluded that would not be right, given the hundreds of thousands of young people he described as stuck in a system that traps them in poverty with no prospect of a job. People are receiving an entitlement now, he said, and that entitlement is going to change. "But it needs to," he added.
He was also frank about the money. "Candidly," he said, some people could get less financial support at the start of a claim than they do now. He framed the question as one of priorities: whether the aim is young people's longer-term life chances or their immediate finances. In his view the current system favours the latter, and that is the wrong choice.
The proposals are expected to arrive with an employment support package for young people that could cost billions. Last week The Telegraph reported that the review will recommend spending an extra £6bn on getting people back into work. Young people who do not engage with the support they are offered are expected to lose some of their benefits. Milburn said the plans need "significant" extra spending and suggested they would not cut the benefits bill in the short term. "Cost-free" is "fatuous", he said; the only sustainable way to reduce the bill is to get young people into work and paying tax, and that requires investment upfront.
The politics are difficult. The Office for Budget Responsibility expects the welfare bill to total £333bn this year, rising to £407bn a year by the end of the decade. Andy Burnham is under pressure to reduce welfare spending but has refused to make "crude" cuts. Last year Sir Keir Starmer's plan to cut £5bn from the benefits bill prompted a rebellion by more than 80 Labour MPs and badly damaged the then prime minister's authority.
The opposition is making its own offers. Kemi Badenoch has set out plans to cut £36bn from the benefits bill, while Reform UK says it has found £50bn of savings. Last month Badenoch proposed banning young people from signing straight on to benefits, requiring under-25s with less than six months of continuous employment to take intensive job coaching instead of claiming universal credit.
What to watch is the unveiling itself: how the multibillion-pound employment package is costed, and how Labour MPs respond to a plan that would change entitlements people already hold.
Citas Notables
Some people could get less financial support at the beginning of a claim than under the current system.— Alan Milburn, in an interview with The Times
'Cost-free' is fatuous; it will need significant investment.— Alan Milburn
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