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

Some young people could see reductions to the benefits they are entitled to, under a radical overhaul of the system to be recommended by a government-commissioned review.

Alan Milburn's year-long report, which will be published on Tuesday, will recommend moving under-25s off the main sickness and disability benefits, the Times reported, external.

Milburn, a former Labour health secretary, has been tasked by the government with helping reduce the one in eight 18- to 24-year-olds in the UK who are not in education, employment or training - or "Neet".

He said on Wednesday night that his plans would not be "pain-free" and would affect both existing and new claimants.

His report is expected to recommend that under-25s are no longer able to claim the health element of universal credit or personal independence payment (Pip).

Instead, they would receive an allowance on the same basic rate as universal credit.

Some could be eligible for a new "additional cost allowance" to cover day-to-day costs related to their conditions.

But many claimants would receive less under the plans, which the government is set to take forward into legislation in the new year.

Milburn, a Labour MP from 1992 to 2010, is also expected to recommend an investment of billions into more employment support for young people, including work placements, job subsidies and one-to-one personal advisers.

Those with more severe disabilities and unable to work would get a new benefit paid at a higher rate.

Speaking to the Times about his report, Milburn said: "Candidly, it could mean that some people will get less financial support at the beginning of their benefit claim than under the current system.

"But actually, for young people, there's a different debate that we've got to resolve, which is whether the priority is their longer-term life chances or just their immediate shorter-term finances.

"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."

Just under one million young people in the UK are Neets, data from the Office for National Statistics (ONS) from April to June suggests. This was a rise of 3% on the same period last year.

Milburn's recommendations are likely to be backed by Prime Minister Andy Burnham but could prove controversial among Labour MPs, who opposed welfare reform under his predecessor Sir Keir Starmer.

The reforms would represent a radical overhaul of Britain's welfare system, at a time when there is heavy political pressure for the UK to find the money to spend more on defence.

If Milburn's recommendations were approved, it could take almost a decade for the British state to see monetary savings.

The new system "will need significant investment" and would involve "rebuilding the system from scratch," Milburn added.

He said that currently "you've got hundreds of thousands of young people stuck in a benefit system that is trapping them in poverty, giving them no prospect of prosperity or a job".

His new proposed system would involve an element of carrot and stick, where young people could lose some of their benefits if they did not engage with the extra work support options.

"A deal isn't a deal unless there are potential consequences," Milburn said. "Entitlements and responsibilities are two sides of the same coin."

A government spokesperson said: "We will always ensure there is a safety net for the most vulnerable and those who are unable to work.

"But the prime minister has been clear that we need a wholesale change in the way we support young people to grow up in this country, where we invest in their success rather than paying for failure."