Review to Propose Moving Under-25s Off Main Sickness Benefits

Young people in the UK could face reductions in state support under a sweeping review of the welfare system led by Alan Milburn. Publishing on Tuesday, the year-long report is expected to recommend shifting under-25s off the main sickness and disability benefits. Milburn was tasked by the government to help reduce the number of 16 to 24-year-olds not in education, employment or training, a group known as Neet.

Proposed Changes

Under the plans, young people would no longer be able to claim the health element of universal credit or personal independence payment, known as Pip. Instead, they would receive an allowance set at the same basic rate as universal credit, alongside a possible new additional cost allowance for day-to-day conditions. Of the four million people claiming Pip in England and Wales, about 430,000 are aged between 16 and 24. Milburn acknowledged that some people could receive less financial support at the start of their claim, though exact amounts remain unclear until legislation is published early next year.

Support and Reactions

The review is also expected to suggest investing billions of pounds into job support, work placements, job subsidies, and personal advisers, while those with severe disabilities unable to work would receive a new higher-rate benefit. Labour MP Bell Ribeiro-Addy expressed doubt over cutting benefits for existing claimants, while disability groups raised concerns. James Taylor from Scope called Pip a lifeline, and Harriet Edwards from Sense noted families are deeply anxious without full details. Prime Minister Andy Burnham is likely to back the recommendations, but they could face friction among Labour MPs.

Context

The welfare proposals arrive as political pressure mounts in the UK to increase defence spending, with opposition parties also calling for benefit cuts. Rebuilding the welfare system from scratch would require heavy upfront investment, meaning state savings might take nearly a decade to appear.