PIP News & Analysis

UK Review Proposes Benefit Reductions for Under-25s Affecting 430,000 Youths

A UK government-commissioned review led by Alan Milburn is expected to recommend reducing sickness and disability benefits for people under 25. The report proposes moving under-25 claimants off the main sickness and disability benefits, including the health element of universal credit and personal independence payment (PIP). Approximately 430,000 people aged 16 to 24 currently claim PIP in England and Wales. Milburn's review aims to reduce the one in eight 16-to-24-year-olds in the UK who are not in education, employment, or training, referred to as "Neets." The report suggests a new allowance at the basic universal credit rate for under-25s, with some eligible for an "additional cost allowance" for daily condition-related expenses. It also recommends increased investment in employment support like work placements, job subsidies, and personal advisers. Those with more severe disabilities and unable to work would receive a new, higher-rate benefit. The report acknowledges that some young people could receive less financial support initially. ONS data shows just under one million Neets in the UK, a 3% increase from the previous year. The changes seek to prioritize long-term life chances over short-term finances. The recommendations could be supported by Prime Minister Andy Burnham but face opposition from some Labour MPs who resisted prior welfare reforms.