The proposed reform specifically targets the roughly one in eight 18- to 24-year-olds in the UK who are currently not in education, employment, or training. It would bar young people from claiming personal independence payment or the health element of universal credit, moving them to a basic universal credit rate instead. To offset these reductions, the plan directs billions of pounds toward personal advisers, work placements, and job subsidies. However, young claimants could face benefit deductions if they refuse to engage with the provided employment support.
Key points
Young benefit recipients could lose part of their financial support if they fail to engag…: Young benefit recipients could lose part of their financial support if they fail to engage with the offered employment options.
The government under Prime Minister Andy Burnham is expected to introduce legislation bas…: The government under Prime Minister Andy Burnham is expected to introduce legislation based on the recommendations in the new year.
Upfront spending on employment support means it could take nearly ten years for the state…: Upfront spending on employment support means it could take nearly ten years for the state to realize financial savings.
Sources checked by our analysis pipeline: 1
- Published
Some young people could see reductions to the benefits they are entitled to, under a radical overhaul of the system to be recommended by a government-commissioned review.
Alan Milburn's year-long report, which will be published on Tuesday, will recommend moving under-25s off the main sickness and disability benefits, the Times reported, external.
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 - or "Neet".
He said on Wednesday night that his plans would not be "pain-free" and would affect both existing and new claimants.
His report is expected to recommend that under-25s are no longer able to claim the health element of universal credit or personal independence payment (Pip).
Instead, 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.
But many claimants would receive less under the plans, which the government is…
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