Politics1 min read

Local fund to replace Pip for most young disabled people under Milburn plans

By · Via The Guardian Politics · Published by Everything Blog

In short

Under the proposals, under-25s would be barred from claiming personal independence payments and the health element of universal credit, moving instead to a standard youth allowance paired with a locally managed fund for short-term expenses. The framework retains exceptions for individuals with the most severe conditions who will never work, alongside higher rates for those living independently. Downing Street has backed the push for early intervention while refusing to rule out enforcing these cuts on existing claimants. Campaigners and Labour MPs strongly oppose the measures, arguing they penalize young disabled people and drastically weaken the social safety net.

Key points

  • Most young disabled claimants would rely on a local fund and standard youth allowance rat…: Most young disabled claimants would rely on a local fund and standard youth allowance rather than national disability benefits.
  • Exceptions will remain for claimants living independently and individuals with severe nee…: Exceptions will remain for claimants living independently and individuals with severe needs who can never work.
  • Downing Street supports the reform principles but has declined to clarify whether existin…: Downing Street supports the reform principles but has declined to clarify whether existing young claimants will be affected.

Sources checked by our analysis pipeline: 1

Young people with disabilities will lose their personal independence payments and will have to apply instead to a local fund for short-term expenses and equipment, Alan Milburn’s review will recommend.

Under-25s will be barred from claiming Pip and the health element of universal credit and instead will get a new youth allowance paid at the standard rate of universal credit.

Milburn, a former health secretary, has said the current system of benefits must be entirely replaced for young people. “We need to tear up the old approach and start again for under-25s. A tweak to the benefits system just won’t do,” he said in a statement to the Guardian announcing the plans.

“We need a new system built around a young person with schools, the NHS and employers all working together to make sure that everyone has the chance to earn or learn.”

The long-awaited report on youth unemployment will promise almost half a million job and eduction opportunities within a decade, but will also advise sweeping changes to the benefits system for under-25s.

There will be a local fund…

Politics