DWP PIP and Universal Credit under-25s major benefits shake-up

Alan Milburn has spent the past year carrying out a Government-commissioned review into the number of young people not in education, employment or training (Neets), which currently stands at around one million.

A young person is classed as a Neet if they are aged between 16 and 24 and are not in education, employment or training.

According to The Times, Milburn's report is expected to recommend moving some under-25s away from the main sickness and disability benefits, in a major shake-up of the welfare system.

The review, which is due to be published on Tuesday, November 17, is expected to represent the biggest overhaul of the benefits system since Universal Credit was introduced in 2013.

Former Labour health secretary Milburn is reportedly expected to recommend that young people classed as Neets can no longer claim the health element of Universal Credit or Personal Independence Payment (PIP) under the proposed changes.

Instead, the money they receive would be based on the same basic rate as Universal Credit.

Milburn has acknowledged that this could leave some young claimants receiving less money, although the exact amounts will not become clear until the Government confirms its plans early next year.

PIP is currently available to eligible people both in and out of work who need financial support with the additional costs associated with a disability or long-term physical or mental health condition.

Under the proposals, some young people could instead qualify for a new 'additional cost allowance' to help cover everyday expenses linked to their conditions.

However, fewer people are expected to qualify for this support.

Meanwhile, those whose disabilities mean they are unable to work are expected to receive a new benefit paid at a higher rate.

It's not yet clear if any proposed changes could affect both existing claimants or be limited to people making new claims.

Speaking on Good Morning Britain previously, Prime Minister Andy Burnham highlighted the issue, saying: "You have a situation where you have a million young people not in education, employment, or training, that doesn't strengthen national resilience and national security.

"I think a big change is needed here, where we move to a situation where the spending is not to sustain people on benefits, but we give people the right support when they need it."

Alongside the proposed benefit changes, Milburn is also expected to recommend billions of pounds of investment to help young people move into employment.

This could include more work placements and one-to-one support from personal advisers to help those currently outside the jobs market find work.

Milburn, who served as a Labour MP between 1992 and 2010, has highlighted that the UK already spends £22billion a year on young people who are not in education, employment or training.

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A Government spokesperson said: "The Milburn and Timms reviews are due to be published in the coming weeks, and we will respond to their recommendations in full.

"We are already reforming the system through the Youth Guarantee, narrowing the gap between the Universal Credit standard and health rates, restoring face-to-face assessments, and investing a record £3.5 billion in employment support for disabled people and those with long-term conditions.

"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."