Some young people could see reductions to the benefits they are entitled to under a radical overhaul of the welfare system to be recommended by a government-commissioned review.
As reported in the Times, Alan Milburn’s year-long report, to be published on Tuesday, is expected to recommend moving under-25s off the main sickness and disability benefits.
Milburn, a former Labour health secretary, has been tasked by the government with helping reduce the one in eight 16 to 24 year-olds in the UK who are not in education, employment or training – otherwise known as “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 say that under-25s should no longer be 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.
Some claimants would receive less under the plans – although the exact amounts will not be clear until early next year, when the government publishes legislation to implement the changes.
People can claim Pip to help them with the additional cost of being disabled or living with long-term physical or mental health conditions. It is available to those both in and out of work.
Of the four million people claiming Pip in England and Wales, around 430,000 are aged between 16 and 24.
In his interim report, Milburn said survey data found that 19% of young people claiming disability or health benefits were in work.
Milburn, a Labour MP from 1992 to 2010, is also expected to recommend an investment of billions into more employment support for young people, including work placements, job subsidies and one-to-one personal advisers.
Those with more severe disabilities and unable to work would get a new benefit paid at a higher rate.
Milburn told the Times: “Candidly, it could mean that some people will get less financial support at the beginning of their benefit claim than under the current system.