Milburn Review Recommends Cutting Sickness Benefits for Under-25s

A government-commissioned review led by Alan Milburn is expected to recommend moving people under 25 off the United Kingdom's main sickness and disability benefits, replacing the health element of Universal Credit and Personal Independence Payment (Pip) with a lower, flat-rate allowance, the BBC reported. The full report is due for publication on Tuesday, following a year-long review commissioned by the government and first flagged in the Times.

What does the Milburn review recommend for under-25s?

Milburn, a former Labour health secretary, was tasked with proposals to reduce the share of 16- to 24-year-olds who are not in education, employment or training, a group tracked as "Neet," according to the BBC. His report is expected to recommend that under-25s lose access to the health element of Universal Credit and Pip, receiving instead an allowance set at the basic Universal Credit rate. Some claimants could additionally qualify for a new "additional cost allowance" tied to day-to-day costs linked to their conditions, the BBC reported. Those with more severe disabilities who are unable to work would be moved onto a separate, higher-rate benefit under the plan.

The review is also expected to call for new spending on employment support for young people, including job subsidies, work placements and one-to-one advisers, according to the BBC's sourcing. Exact payment amounts will not be known until the government publishes implementing legislation, expected early next year, the outlet reported.

How many young claimants would the change affect?

Of roughly four million people claiming Pip in England and Wales, about 430,000 are between 16 and 24, the BBC reported. Milburn's interim report, cited by the BBC, found that 19% of young people claiming disability or health benefits were in work. Separately, Office for National Statistics data covering April to June found just under one million young people in the UK classified as Neet, a 3% increase over the same period a year earlier.

Figures at a glance

• 430,000: 16- to 24-year-olds among roughly four million Pip claimants in England and Wales, per the BBC's reporting.
• 19%: share of young disability or health benefit claimants who were employed, according to Milburn's interim report.
• ~1 million: Neet young people in the UK, per ONS data for April–June, up 3% year-over-year.

Why is Milburn targeting young claimants specifically?

Milburn framed the recommendation as a trade-off between short-term income and long-term employment prospects rather than a straightforward reduction in support. "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 told the Times, as reported by the BBC.

"I think what the current system does [is] it prioritises the latter over the former. I believe that's the wrong choice and it needs to be the other way around." — Alan Milburn

Milburn did not dispute that the changes would be felt by claimants. He said on Wednesday night that the plans would not be "pain-free" and would affect both existing and new claimants, according to the BBC.

What pushback has the review faced inside Labour?

Prime Minister Andy Burnham is likely to back Milburn's recommendations, the BBC reported, but the proposals could prove difficult within his own party. Labour MPs rebelled against welfare changes last year under Burnham's predecessor, Sir Keir Starmer, and backbencher Bell Ribeiro-Addy told BBC Radio 4 she was "not sure" she could vote to cut the benefit entitlement of existing claimants, adding that the issue had been a factor in last year's rebellion.

The BBC's report does not include comment from opposition parties or disability advocacy groups on the specific proposals, and the precise financial impact on individual claimants will not be clear until legislation is published, per the reporting.

What happens next?

Milburn's full report is scheduled for publication on Tuesday. The government is expected to follow with legislation in early 2027 that would set out the actual payment rates under the new system, according to the BBC. Until that legislation is published, the size of any reduction facing individual claimants remains unconfirmed.

Glossary

• Pip (Personal Independence Payment): A UK benefit for people with long-term physical or mental health conditions, available whether or not they are working.
• Universal Credit health element: An additional payment within Universal Credit for claimants with limited capability for work due to illness or disability.
• Neet: Shorthand for young people "not in education, employment or training," tracked by the Office for National Statistics.

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