Some under-25s should get fewer benefits, Milburn review to say

A government-commissioned review is set to recommend that young adults be barred from claiming main sickness and disability benefits, sparking renewed debate across Westminster.

The sweeping welfare overhaul, led by youth unemployment tsar Alan Milburn, is expected to propose removing under-25s from the health element of universal credit and personal independence payments (PIP). Instead, young people would receive a new youth allowance paid at the standard rate of universal credit. Those facing severe disabilities that prevent them entirely from working would qualify for a new benefit paid at a higher rate, while others might receive an additional cost allowance to cover day-to-day conditions.

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Milburn acknowledged that his proposals would not be pain-free and could mean some individuals receive less financial support at the start of their claims. Speaking to The Times, he argued that the current system incorrectly prioritizes immediate short-term finances over long-term life chances.

"Candidly, it could mean that some people will get less financial support at the beginning of their benefit claim than under the current system. But actually, for young people, there's a different debate that we've got to resolve, which is whether the priority is their longer-term life chances or just their immediate shorter-term finances."

Alan Milburn, youth unemployment tsar, via BBC

He also warned that monetary savings for the state could take almost a decade to materialize.

The proposals arrive as the government grapples with rising economic inactivity. Data indicates that a significant proportion of young people are not in education, employment, or training (NEET). According to a report by the Resolution Foundation, the UK's NEET rate has climbed following the pandemic, driven heavily by rising levels of young people inactive due to disability or ill health, particularly mental health conditions. Office for National Statistics data indicated that just under one million young people in the UK were NEET during the April to June period, representing an increase compared to the previous year. Research highlighted that the proportion of 18 to 24-year-olds inactive due to disability or ill health had grown significantly since pre-pandemic levels.

At the same time, employers report persistent hurdles when recruiting younger staff. A survey of roughly 500 employers conducted for the Department for Work and Pensions found that a perceived lack of soft skills, work readiness, and resilience formed primary barriers to hiring younger applicants. The research noted that a notable percentage of employers cited a lack of soft skills and work readiness as key obstacles, while other employers pointed to a lack of work experience and resilience.

Political friction is already building over the anticipated recommendations. Labour backbencher Bell Ribeiro-Addy voiced direct opposition to cutting benefit entitlements for existing claimants, telling BBC Radio 4's Today programme that removing financial support would not successfully push disabled youth into work. Housing Minister Matthew Pennycook defended the administration's intent, arguing that leaving the struggling status quo unchanged is unacceptable.

Metric / Category	Reported Figure or Status
NEET population (16–24 age group)	Nearly one million young people (BBC / Streamline Feed)
PIP claimants aged 16 to 24 (England and Wales)	Around 430,000 (BBC)
Employers citing soft skills and work readiness gap	41% (Personnel Today)

Disability charities have expressed measured concern. While welcoming proposals for expanded employment support—such as work placements and one-to-one personal advisers—organisations like Sense warned that vulnerable young disabled people risk losing out if changes proceed without adequate specialist funding. Harriet Edwards, director of influencing at Sense, stated that organizations are deeply concerned that young disabled people could lose out if proposals are advanced without proper funding for specialist employment support.

A government spokesperson responded that officials will always ensure there is a safety net for the most vulnerable and those who are unable to work. Meanwhile, a separate review examining disability benefits, co-chaired by disabilities minister Sir Stephen Timms, is also expected to be published.

The formal review is scheduled for publication, with the government expected to bring forward substantive legislation early next year to clarify exact payment amounts and operational structures.