Should younger individuals lose entry to DWP advantages?

Former Labour Cabinet minister Alan Milburn admitted changes to how out-of-work young people are treated will not be ‘pain-free’ ahead of the release of his major report

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Young people will lose the main sickness and disability benefits under plans to bring down the welfare bill.

Proposals put forward by Alan Milburn, who has been conducting a review into the one million people who are not in employment, education or training (Neets), would see adults under 25 lose access to the support, and instead get a new youth allowance paid at the standard rate of universal credit.

The former Labour Cabinet minister admitted changes to how out-of-work young people are treated will not be “pain-free”, as he acknowledged some would lose out on financial support under his plans.

His proposals would see adults under 25 barred from claiming two main sickness and disability benefits: the health element of universal credit and personal independence payments (Pip).

They would instead get a new youth allowance paid at the standard rate of universal credit.

Mr Milburn told The Times: “I’m not saying that any of this will be easy or that it will be pain-free because it won’t. You know, candidly, it could mean that some people will get less financial support at the beginning of their benefit claim than under the current system.” Under the plans, employment support would be expanded.

Many people receiving Pip will be moved on to a new benefit called the “additional cost allowance” to help with costs relating to their disability, while those with disabilities that mean they can never be expected to work would be given a new benefit targeted to a smaller cohort, The Times reported.

Mr Milburn’s full review into Neets is expected to be published in full next week, with Andy Burnham expected to accept its recommendations.

The Government plans to bring forward major welfare reforms in 2027 amid efforts to reduce the 45% of young people who are not in education, employment or training (Neet) – around a million people.

Mr Burnham has said an overhaul to the benefits system will require the Government to “invest up front in young people”.

Disability charity Sense said it supports efforts to give more young disabled people the opportunity to work while protecting those who cannot.

But director of influencing Harriet Edwards said: “We’re deeply concerned that, if these proposals are taken forward without proper funding for specialist employment support alongside welfare changes, some young disabled people could lose out.

“We need to understand who will qualify for the new support, who risks missing out, and what practical, accessible help young disabled people will actually receive to find work.

“We know many of the families we support are deeply anxious about what these changes could mean for them, and we urge the Government to provide clarity as soon as possible.”