Milburn Proposes Radical Welfare Shift Ending PIP and Sickness Benefits for Young People

POLICY WIRE — London, UK — A sweeping proposal to restructure the national welfare system would strip young people of access to primary sickness and disability benefits, significantly reducing financial support for the demographic.

Former health secretary Alan Milburn has detailed a ‘big rewriting’ of the current framework in a review scheduled for release Tuesday. In an interview with The Times, Milburn acknowledged that the transition would be difficult for those involved.

As the chair of the Social Mobility Foundation, Milburn spent the past year investigating approximately one million individuals aged 18 to 24 who are currently outside of education, employment, or training. He argued that modernizing the system is the most effective method for integrating youth into the workforce.

The proposed strategy suggests that young adults would no longer be eligible for the health-related component of universal credit or Personal Independence Payment (PIP).

In their place, these individuals would transition to a newly created ‘youth allowance,’ set to match the standard rate of universal credit payments.

Those currently relying on PIP to manage disability-related challenges would instead be moved to an ‘additional cost allowance’ designed to cover daily expenses associated with their conditions.

For individuals deemed entirely unable to work due to a disability, the plan introduces a distinct benefit tiered at a higher payment rate.

Milburn told The Times that he was not claiming the changes would be easy or free of hardship. He noted candidly that some claimants might receive lower financial assistance at the start of their claims compared to the existing status quo.

He emphasized that a fundamental debate exists regarding whether the focus should be on the long-term life prospects of young people or their immediate financial needs.

Milburn stated his priority is ensuring young people can build a sustainable future rather than providing short-term financial relief for a year or two.

The government aims to implement these significant welfare changes by 2027, seeking to address the 45 percent of young youth—roughly a million people—who are not working, studying, or training.

Prime Minister Andy Burnham indicated that transforming the benefits structure requires the state to make upfront investments in the younger generation.

The reform plan also calls for an expansion of employment assistance. Milburn asserted that the variety of opportunities must grow, providing each individual with a personal adviser and coaching until they secure a job, apprenticeship, or educational placement.

The disability charity Sense expressed support for the goal of increasing work opportunities for young disabled people, provided protections remain for those who cannot work.

However, Harriet Edwards, director of influencing at Sense, voiced concerns that young disabled individuals could suffer if the changes proceed without adequate funding for specialist employment support.

Edwards called for immediate clarity on eligibility criteria, the risk of exclusion, and the practical nature of help provided, noting that many supported families are deeply anxious about the proposal.

Reporting by Policy-Wire (PW)