Milburn review recommends cutting under-25 sickness benefits

Some under‑25s could see cuts to the benefits they are entitled to after a government‑commissioned review says the welfare system needs a radical overhaul. The report, due to be published on Tuesday, will recommend that young people leave the main sickness and disability benefits and instead receive a basic allowance on the same rate as Universal Credit, with a possible “additional cost allowance” to cover day‑to‑day expenses.

The review is headed by Alan Milburn, a former Labour health secretary who has been tasked by the government with cutting the one‑in‑eight UK 16‑to‑24 year‑olds who are not in education, employment or training – the so‑called NEETs. Milburn told the Times that his plan would not be “pain‑free” and would affect both existing and new claimants. In his interim report he found that 19 % of young people claiming disability or health benefits are already in work, suggesting that the current system prioritises short‑term cash over long‑term life chances.

Under Milburn’s proposal, under‑25s would lose the health element of Universal Credit and the Personal Independence Payment (PIP) that England and Wales use to help disabled people. Scotland would remain exempt, as disabled people there can claim the devolved Adult Disability Payment. The new allowance would be at the same basic rate as Universal Credit, but those with more severe disabilities and unable to work would receive a higher‑rate benefit. The government is expected to publish legislation next year to implement the changes, and the exact figures will be announced then.

Prime Minister Andy Burnham said the aim is to give young people support “when they need it as teenagers rather than leaving them on benefits in their 20s”. He added that the plan will include billions of pounds for employment support, such as work placements, job subsidies and one‑to‑one advisers. The review highlights a shift in policy focus from immediate cash flow to longer‑term opportunities, a move that will shape the future of welfare for the next generation.