Milburn Review Proposes Benefit Cuts for Under-25s to Tackle Youth Inactivity

A government-commissioned review led by former Health Secretary Alan Milburn is set to recommend a radical overhaul of the benefits system that would reduce entitlements for young people, according to a report in The Times.

The year-long review, due for publication on Tuesday, proposes moving under-25s off the main sickness and disability benefits. Milburn has been tasked with addressing the rate of young people not in education, employment, or training (NEET), which currently stands at one in eight for 18- to 24-year-olds in the UK.

Speaking on Wednesday, Milburn acknowledged his proposals would not be “pain-free” and would affect both existing and new claimants. The report is expected to recommend that under-25s lose access to the health element of Universal Credit and Personal Independence Payment (PIP). Instead, they would receive an allowance at the basic Universal Credit rate, with some eligible for a new “additional cost allowance” to cover daily expenses related to their conditions.

Many claimants would receive less under the plans, which the government intends to legislate in the new year. However, the review also calls for billions in investment for employment support, including work placements, job subsidies, and one-to-one personal advisers. Those with severe disabilities deemed unable to work would receive a new benefit paid at a higher rate.

“Candidly, it could mean that some people will get less financial support at the beginning of their benefit claim than under the current system,” Milburn told The Times.

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