Milburn review proposes cutting benefits for under-25s while dressing up austerity as reform
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A government-commissioned review led by former Labour health secretary Alan Milburn will urge moving under-25s off core sickness benefits, replacing them with a lower-rate allowance and bolstering employment measures that critics may see as another squeeze on young people already facing insecurity.
A government-commissioned review headed by former Labour health secretary Alan Milburn is set to recommend a sweeping restructuring of welfare for people aged 18 to 24. The year-long report, due on Tuesday, proposes stripping the health element from universal credit and personal independence payment for under-25s and replacing it with a basic-rate allowance. Some claimants could qualify for an additional cost allowance to cover daily expenses linked to their conditions, but many would receive less financial support at the outset, deepening pressure on those already living on the edge.
Milburn told the Times the changes would not be "pain-free" and would affect both existing and new claimants. He argued that the current system "prioritises the latter over the former" – favouring short-term finances over long-term life chances – and said the priority should be reversed. The warning, however, is that a system supposedly designed to help could end up penalising young people for being sick or disabled while forcing them into harsher financial conditions.
The review also suggests investing billions in employment support for young people, including work placements, job subsidies and one-to-one advisers. Those with severe disabilities who cannot work would receive a new, higher-rate benefit. Yet the scale of the proposed cuts to current support raises questions about whether this is genuine help or simply a more managed form of austerity wrapped in the language of opportunity.
Data from the Office for National Statistics shows just under one million young people in the UK are classified as NEET, a 3% rise from the previous year. A government spokesperson said a safety net will remain for the most vulnerable, adding that the prime minister has called for a "wholesale change" in how young people are supported. If adopted, the reforms could take up to a decade to generate savings and would require substantial investment to rebuild the system from scratch, meaning immediate hardship in exchange for uncertain long-term results.