Key facts
- Milburn's report is due to be published on Tuesday, per the Times.
- Under-25s would instead receive an allowance on the same basic rate as universal credit.
- Some claimants could be eligible for a new additional cost allowance for day-to-day costs related to their conditions.
- Milburn is expected to recommend billions in investment in employment support, including work placements, job subsidies and one-to-one advisers.
- Those with more severe disabilities and unable to work would get a new benefit paid at a higher rate.
- The government is set to take the plans forward into legislation in the new year.
Alan Milburn will publish his year-long review on Tuesday, and it will recommend moving under-25s off the main sickness and disability benefits, the Times reported. Milburn, a former Labour health secretary, has been tasked by the government with helping reduce the one in eight 18- to 24-year-olds in the UK who are not in education, employment or training, known as Neet.
Milburn said on Wednesday night that his plans would not be pain-free and would affect both existing and new claimants. Instead of the main sickness and disability benefits, they would receive an allowance on the same basic rate as universal credit. Some could be eligible for a new additional cost allowance to cover day-to-day costs related to their conditions. Many claimants would receive less under the plans, which the government is set to take forward into legislation in the new year.
Milburn is also expected to recommend an investment of billions into more employment support for young people, including work placements, job subsidies and one-to-one personal advisers. Those with more severe disabilities and unable to work would get a new benefit paid at a higher rate.
Speaking to the Times about his report, Milburn said: "Candidly, it could mean that some people will get less financial support at the beginning of their benefit claim than under the current system." He added: "A deal isn't a deal unless there are potential consequences. Entitlements and responsibilities are two sides of the same coin."
Milburn's recommendations are likely to be backed by Prime Minister Andy Burnham but could prove controversial among Labour MPs, who opposed welfare reform under his predecessor Sir Keir Starmer. The reforms would come at a time of heavy political pressure for the UK to find the money to spend more on defense. If approved, it could take almost a decade for the British state to see monetary savings.
Milburn said the new system "will need significant investment" and would involve "rebuilding the system from scratch." He said that currently "you've got hundreds of thousands of young people stuck in a benefit system that is trapping them in poverty, giving them no prospect of prosperity or a job." His proposed system would involve an element of carrot and stick, where young people could lose some of their benefits if they did not engage with the extra work support options.
A government spokesperson said: "We will always ensure there is a safety net for the most vulnerable and those who are unable to work. But the prime minister has been clear that we need a wholesale change in the way we support young people to grow up in this country, where we invest in their success rather than paying for failure."