Benefits shake up could see some young people lose out

Young people could see a reduction in their benefits in a government bid to get them into work following a landmark review into youth unemployment. The review, carried out by Labour former health minister Alan Milburn, will be published next week, with some of his party's MPs already expressing nervousness about the cuts that could follow. Milburn told The Times that changes to how out-of-work young people are treated will not be “pain-free”, and some young people on benefits will lose out on their financials support.

“I’m not saying that any of this will be easy or that it will be pain-free because it won’t,” he said. “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.” Almost one million young people aged 16-24 are Neet (not in employment, education, or training). In his interim report , Milburn estimated the annual cost of this to be £125 billion to the UK economy.

What will Milburn's review recommend? The proposals could see some adults under 25 barred from claiming two main sickness and disability benefits. This would include the health element of universal credit and personal independence payments (Pip), The Times reported. Alan Milburn's report on youth unemployment will be released next week. Credit: PA They would instead get a new youth allowance paid at the standard rate of universal credit.

Sir Stephen Timms' review into the personal independence payment (Pip) disability benefit is set to be published shortly after Milburn's review. Prime Minister Andy Burnham has said an overhaul to the benefits system will require the government to “invest up front in young people”. Under Milburn’s proposals, employment support would be expanded. “The menu of opportunities has got to increase. They’ll have a personal adviser, they’ll be coached all the way through.

The adviser will stick with them until they have found a job or an apprenticeship or college place.” Will young people's benefits be cut? Milburn's review will recommend that many people receiving Pip should be moved on to a new benefit called the “additional cost allowance” to help with costs relating to their disability. Meanwhile those with disabilities who could never be expected to work would be given a new benefit, according to the Times.

Pat McFadden travelled to Denmark for inspiration on how to tackle unemployment with flexible work. Credit: ITV News Last week, ITV News joined the work and pensions secretary on his visit to Denmark to learn about their ‘Fleksjobs’ scheme for people with reduced work capacity. There, the Work and Pensions Secretary Pat McFadden offered assurances that disabled people who can never work will always be supported by the state. He said: “I want disabled people to know that for people who can never work, who've got a lifelong disability, the welfare state should always be there for them."

However, he suggested that those who do have some capacity to work could be helped by the government to do so. Subscribe for free to our weekly newsletter for exclusive and original coverage from ITV News. Direct to your inbox every Friday morning. In 2014, 21% of Neets were classed as disabled, but government data published last week showed that number had increased to 45.3% in 2026. McFadden told ITV News: “For people who can work with the help and support, I think we need to do more than we've been doing in the past.

I don't think it's good that so many people are simply signed off and sometimes written off.” He said: “We've had a really big increase in young people saying that they are unfit for work, very often because of mental health or neurodiverse conditions. “I'm concerned about that because I think that while there’s greater prevalence of these conditions, I don't think it should lead to a life of inactivity and a life on benefits. I think for many people, work is part of the answer.

Work is good for you.” Consultant doctors call off strike after 'constructive' talks over pay, BMA says Tories warn young people that 'if they don’t show up, they won’t get welfare' McFadden said the “narrative” of young people being labelled as “snowflakes and shirkers” is “wrong”. He continued: “I want to give young people a chance, and that's why I want a big reset of the system, because not enough of them are getting a chance right now.”

How are people reacting? Dr Simon Opher, MP for Stroud and also a GP, has previously rebelled against the government on cuts to welfare. From the suggestions shared so far, he says he believes that Milburn's review has the "right attitude" but that he is "nervous about some of the cuts" which could come. Opher said: "The vast majority of young people want to work. As a GP, I have seen many young people with significant mental health issues being failed by our system and being left out of the world."

He also warned that "cutting benefits should be a last resort". Labour MP Dr Simon Opher has previously rebelled against cuts to welfare Credit: PA Disability charity Sense said it supports efforts to give more young disabled people the opportunity to work, but has reservations about some of Milburn's proposals. Its 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.” Iain Porter, senior policy adviser at Joseph Rowntree Foundation, said: “Cutting someone’s income when they’re already struggling to afford food or the bus to college makes it harder for them to stay in education or find work.

“The government can and should invest in supporting people back into employment. Young disabled people shouldn’t have to trade financial security for better employment support. They need both.” Milburn's full review will be published next week. Have you heard our podcast Talking Politics? Tom and Robert dig into the biggest issues dominating the political agenda in every episode…