Major review to welfare system could see under-25s get benefits reduced
Under-25s could see their access to benefits slashed, as the government looks to get more young people into work.
According to a report from The Times, former Labour MP Alan Milburn is set to publish a report which argues that Britain's welfare system needs to be rebuilt in order to stop young people from becoming reliant on benefits for the rest of their lives.
The report, which is set to be published next Tuesday, follows the news that nearly one million Brits aged between 16 and 24 are classified as NEETS, which stands for not in education, employment or training.
Milburn is expected to call for anyone under the age of 25 to be locked out of claiming the health aspect of Universal Credit (UC) or Personal Independence Payments (PIP) moving forward.
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According to current statistics, there are around four million people under the age of 25 in England and Wales who are registered for PIP, per the BBC, while figures released by the Department for Work and Pensions state that 768,000 young people aged 16 to 24 are claiming Universal Credit.
This would instead be replaced with an 'additional cost allowance' at the same rate as UC, which would cover daily costs related to health conditions, while those who are unable to work at all due to their disability would be eligible for a new benefit, paid at a higher rate.
Milburn acknowledged in his interview with The Times that the proposed changes to the welfare system would not be 'pain-free' but would give young Brits the best chance at finding work.
"Candidly, it could mean that some people will get less financial support at the beginning of their benefit claim than under the current system," Milburn, who is the current chair of the UK's Social Mobility Commission, said.
"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."
If the report receives backing from Andy Burnham's government, the recommendations would likely be included in the plans to implement major welfare reforms in 2027 in order to combat rising youth unemployment.
According to the statistics published back in August, 60 percent of under-25 NEETS were classed as economically inactive, which means they are not working or looking for work.
This reached the highest level since records began between January and March 2026 but subsequently dropped in April to June.
The other 40 percent was classed as unemployed, which means they are currently looking for work and would be available to start within the next two weeks.
Brenna Cooper
