Pat McFadden warns some young people will lose benefits under welfare review

Pat McFadden warned that some young people will lose benefits under an upcoming welfare review, as the Government prepares to overhaul support for individuals aged sixteen to twenty-four not in education, employment or training, according to reporting by the Independent, AOL, the East Renfrewshire News, and Newswav.

The total number of young people classified as Neets topped one million earlier this year for the first time in more than a decade. Ahead of a major review set for publication, the Work and Pensions Secretary acknowledged that future benefit recipients will face changes to their entitlements when reassessed under a proposed new system. He defended the looming changes on Sunday, telling broadcasters that the package represents a different proposition from last year, when the Government abandoned planned welfare cuts following a backbench rebellion.

Media additions

Alan Milburn, the former Labour health secretary commissioned by Sir Keir Starmer’s government to carry out the review after it was forced to water down its own welfare plans, proposed moving young people off certain health-related benefits and onto a new youth allowance. Mr Milburn argued that some young people will receive less financial support under his proposals, which include moving them off some health-related benefits and onto a new “youth allowance” paid at the standard rate of universal credit.

Mr McFadden told the BBC’s Sunday With Laura Kuenssberg show:

"There will be people in the future who will not get what they would get today."

Pat McFadden, Work and Pensions Secretary, via Independent

He added that when people come up for reassessment, they go on to a new system. When asked if the overall working-age benefits bill would be lower by the next election, the Cabinet minister declined to make guarantees, noting that benefits are uprated every year to keep pace with the cost of living for some of the poorest people in the country. He argued that the best way to reduce the bill is through a long-term reset.

Emphasising the scale of the challenge, Mr McFadden stated:

"If you’re 20 right now and you sign on to long-term sickness benefits, you’ve got more chance of marking your 30th birthday and still being on them than having a steady job in between."

Pat McFadden, Work and Pensions Secretary, via Independent

He added that young people with a disability or health condition must accept that this does not always rule out work, noting that his department has signed a deal with the Tourism Alliance, the trade body for the UK visitor economy, aimed at creating fifty thousand jobs for Neets in this Parliament through work experience.

The upcoming review recommends a legal guarantee for young people to access routes into work or training, creating a formal duty for the Government. While Mr McFadden backed this legislative underpinning to give claimants certainty, Mr Milburn clarified that the proposal would avoid the trap of giving young people the right to sue if no opportunities are available, functioning instead as a duty on the Government to provide opportunities.

Conservative shadow work and pensions secretary Helen Whately argued that a legal entitlement does not make sense. Ms Whately tentatively supported shifting focus away from handing out cash for mild conditions, but argued the approach should apply to all ages rather than isolating under-twenty-fives. Reform UK MP Danny Kruger stated he was encouraged by the prospect of stricter rules, though he expressed doubt that Labour backbenchers would permit the necessary spending cuts, pointing to last year's welfare bill attempt.

Concurrently, the Department for Work and Pensions announced an expansion of a taxpayer-funded youth jobs scheme, drawing reactions from across the political spectrum. Conservative leader Kemi Badenoch criticised the Government for making it harder for businesses to take people on while shuffling youth onto subsidised placements, highlighting instead her party's proposals for apprenticeships and business rate cuts. Liberal Democrat work and pensions spokesman Steve Darling called the six-month offering worth very little without a job at the end, advocating for earlier intervention through school work experience.

Scheme / Policy Element	Current Framework	Proposed Changes
Youth Jobs Scheme Eligibility	18 to 24-year-olds wait 18 months on universal credit	Guaranteed fully-funded six-month job after 12 months, rolling out nationwide from November and coming into force in April
Job Scheme Funding & Hours	Funded via a £2.5 billion employment support package	Government funds up to 25 hours of paid work a week at the minimum wage
Under-25 Health Benefits	Eligible for health element of universal credit and personal independence payments	Proposed move to a new youth allowance paid at the standard universal credit rate

Andy Burnham described the forthcoming report as a watershed moment but stopped short of promising to accept its recommendations in full or provide a blanket assurance. The Prime Minister insisted that paying for the reforms would involve spending differently within Government rather than injecting fresh money. Mr Milburn estimated that implementing the comprehensive reset would require billions in investment over a ten-year period to achieve sustainable welfare savings and fiscal benefits, warning that moving faster or tougher would merely result in crude cuts where young people show up elsewhere in the Government ledger.

What to watch next

• Publication of Alan Milburn's review on Tuesday.
• Implementation of the expanded youth jobs eligibility rules coming into force in April next year, following nationwide rollout starting from the end of November.
• Parliamentary debates and scrutiny as ministers attempt to secure backbench support for the welfare reset against resistance from opposition parties.