Milburn Review Proposes Major Overhaul of Youth Benefits and Disability Support

A long-awaited review led by former health secretary Alan Milburn has recommended sweeping changes to the benefits system for young people. The report suggests that under-25s should no longer claim personal independence payments or the health element of universal credit. Instead, a new youth allowance paid at the standard rate of universal credit will be introduced for this age group.

The proposal marks a significant shift in how support is provided to young people with disabilities. While those with the most severe needs will retain their current entitlements, others will be asked to apply for a local fund. This fund is designed to cover specific short-term expenses, such as equipment or travel costs for training and job interviews. Local advisers will manage the fund with the goal of transferring money quickly when needs arise.

Milburn argued that the current benefits system requires a complete rethink for the under-25 demographic. He stated that the old approach needs to be discarded in favor of a new system where schools, the NHS, and employers collaborate. The aim is to ensure every young person has the opportunity to earn or learn, moving away from a life on benefits toward relentless support for work.

The report promises to create 440,000 employment and education opportunities by 2036. Milburn believes these measures will raise the net incomes of young people by more than £2 billion over the next decade. He emphasized that the primary issue is not a lack of ambition among young people, but a shortage of available opportunities. He noted that every young person he met wanted independence and the chance to earn their own money.

Charities have expressed concern about the impact of the changes on the safety net. The Joseph Rowntree Foundation warned that the proposals could significantly weaken support for hundreds of thousands of young people with disabilities or health conditions. Iain Porter, the charity’s senior policy adviser, stated that cutting income for those already struggling to afford basics like food or transport makes it harder for them to stay in education or find work.

The review also includes provisions for those living independently, including care leavers, who would receive a higher rate of the youth allowance. Additionally, there will be an extra cost allowance for the most disabled young people, regardless of whether they are in work. A new higher insurance provision is planned for those with severe disabilities who may never be able to work.

Government officials have responded to the findings with a mix of openness and caution. Downing Street declined to rule out the changes affecting existing claimants. A spokesperson framed the decision as a choice between investing early in young people’s success or paying the cost of failure later. They argued that the country cannot afford to do both.

Within the Labour Party, reactions have been divided. Bell Ribeiro-Addy, who was part of a welfare rebellion last summer, told Radio 4 that she felt uneasy about voting for cuts to disability benefits. She argued that punishing young people who are already in college or work seems counterproductive to fixing the broader issue.

In contrast, Meg Hillier, chair of the Treasury select committee, told the BBC she was open to the changes. Hillier, who was key to a previous government climbdown on welfare cuts, said she was giving Milburn a fair wind after his work on the review. She noted that the previous proposal was difficult to explain to the public, whereas the new plan offers a clearer path forward.

The report will be officially delivered next Tuesday. It aims to address the trajectory that could see 1.25 million young people out of employment, education, or training. Milburn described the situation as a moral crisis, asserting that a lost generation is a choice that the country can reverse with the right support systems.