Politics1 min read

‘No such thing as a free lunch,’ says Milburn as he warns it will take a decade for UK benefits bill to come down

By · Via The Guardian Politics · Published by Everything Blog

In short

The proposed overhaul aims to generate nearly 500,000 job and education opportunities over the next decade to counter soaring welfare rolls among under-25s. Under the blueprint, standard youth allowances would replace specific health-related payments and personal independence payments for most young claimants. Work and Pensions Secretary Pat McFadden endorsed the plan, emphasizing an element of compulsion to guide youths toward work. Only individuals with severe, permanent disabilities will see their existing welfare entitlements fully protected.

Key points

  • Most young claimants will transition from disability-specific benefits to a standard yout…: Most young claimants will transition from disability-specific benefits to a standard youth allowance unless they have severe, permanent conditions.
  • Ministers plan to introduce an element of compulsion to mandate participation in employme…: Ministers plan to introduce an element of compulsion to mandate participation in employment and skills training.
  • The Labour government expects significant political resistance from its own left-wing mem…: The Labour government expects significant political resistance from its own left-wing members of Parliament over the welfare restrictions.

Sources checked by our analysis pipeline: 1

Alan Milburn has said “there is no such thing as a free lunch”, in response to critics who believe the government should make tougher cuts to out-of-work benefits for young people.

The former health secretary will publish a major review on Tuesday, urging ministers to implement radical reforms to address the UK’s youth unemployment crisis, which has seen the number of young people not in employment, education or training (Neet) rise to about a million.

He told the BBC’s Sunday With Laura Kuenssberg programme the government would have to be “candid with people”, and that it would take 10 years for the benefits bill to come down and for the country to reach a “reasonable level” of youth unemployment as a result of his recommendations.

He also warned the additional investment in young people would cost billions of pounds over a 10-year period.

Milburn said it was impossible to “wave a magic wand” and fix the crisis sooner. “You can if you just do crude cuts,” he clarified. “But if you do crude cuts in benefits, all that happens is…

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