Some under-25s should get fewer benefits, Milburn review to say

A government-commissioned review is preparing to suggest substantial changes to the benefits system for young people, potentially resulting in reduced financial support for some under-25s. The report, led by Alan Milburn, a former Labour health secretary, is the outcome of a year-long investigation focused on addressing the issue of young people aged 16 to 24 in the UK who are not in education, employment, or training — a group often referred to as NEETs. Currently, around one in eight individuals in this age bracket fall into this category.

The forthcoming recommendations, expected to be published on Tuesday, are likely to propose that those under 25 should no longer qualify for the health-related components of universal credit or personal independence payment (PIP). Instead, these young claimants would receive an allowance equivalent to the basic universal credit rate. For some, a new “additional cost allowance” might be introduced to help cover daily expenses linked to their health conditions. However, the overall effect for many would be a reduction in their benefit payments. Milburn’s report also emphasizes a significant investment in employment support for young people, including initiatives such as work placements, job subsidies, and personal advisors to aid their transition into work.

Milburn acknowledged the potentially challenging nature of these proposals, stating, “Candidly, it could mean that some people will get less financial support at the beginning of their benefit claim than under the current system.” He further explained the rationale behind these changes, arguing that the current welfare system focuses too much on immediate financial support rather than long-term prospects. “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,” he said.

The recommendations come amid growing political pressure to reform welfare amid wider financial demands on the UK government, including increased defense spending. Although Prime Minister Andy Burnham is expected to support the changes, they have already sparked concern within the Labour Party, with some MPs opposing cuts to existing claimants’ benefits. Bell Ribeiro-Addy, a Labour backbencher, expressed doubts about reducing entitlements, highlighting that PIP supports disabled people in work to maintain independence. She commented on BBC Radio 4’s Today programme, saying, “I don’t think you get a disabled young person into work by taking away the money that helps them get into work.” Meanwhile, officials recognized that the current system traps many young people in poverty without offering a clear path to employment, and the overhaul would involve both greater investment and stricter conditions, including potential consequences for those who fail to engage with employment support