Milburn Review to Signal Radical Benefit Cuts for Under-25s

POLICY WIRE — London, UK — A sweeping transformation of the United Kingdom’s welfare system could result in reduced financial support for many young people under new government recommendations.

Alan Milburn is set to release his year-long review next Tuesday, which suggests moving individuals under the age of 25 off standard sickness and disability benefit tiers.

The former health secretary was commissioned by the government to address the rising ‘Neet’ population, with one in eight citizens aged 18 to 24 currently outside of education, employment, or training.

Speaking on Wednesday night, Milburn acknowledged that the proposed changes would not be “pain-free” and would impact both current and future claimants.

The report is expected to propose that under-25s be barred from claiming the health-related component of universal credit or personal independence payment (Pip).

Under the new framework, these individuals would instead receive an allowance tied to the basic universal credit rate, though some might qualify for an “additional cost allowance” for expenses linked to their conditions.

While many would see a decrease in income, the government intends to codify these reforms into law early early next year.

Milburn, who served as a Labour MP between 1992 and 2010, is also anticipated to call for multi-billion pound investments in youth employment initiatives, including job subsidies, work placements, and personal advisors.

Young people with the most severe disabilities who remain unable to work would be protected by a new benefit category at a higher payment rate.

In an interview with the Times, Milburn noted that some individuals might receive less financial aid at the start of their claims than they do under existing rules.

He argued that the debate should focus on whether to prioritize long-term life chances over immediate financial needs.

Milburn stated the current system makes the wrong choice by favoring the short term and believes this must be reversed.

Data from the Office for National Statistics for April to June shows nearly one million UK young people are NEET, marking a 3% increase compared to the same period last year.

While Prime Minister Andy Burnham may support the measures, they face potential resistance from Labour MPs who opposed Keir Starmer’s previous stance on welfare reform.

The reforms represent a significant shift in British policy, occurring as the government faces political pressure to fund increased defense spending.

Milburn cautioned that the system would require rebuilding from scratch and would involve massive investment, potentially taking a decade for the state to realize cost savings.

The proposed model relies on a “carrot and stick” approach, where benefits could be lost if claimants fail to engage with support. Milburn remarked that entitlements and responsibilities are two sides of the same coin.

A government spokesperson emphasized that a safety net will remain for the most vulnerable and those unable to work, noting the Prime Minister wants to invest in success rather than fund failure.

Reporting by Policy-Wire (PW)