# UK Government Proposes Radical Welfare Reform for Young People Under 25 New report suggests replacing disability benefits with employment support to boost long-term career prospects. - **Source:** [iNews](https://inews.co.uk) - **Published:** 2026-11-11 - **Topic:** [politics](https://brifing.si/c/politics) - **Original article:** - **On Brifing:** https://brifing.si/s/08c924e5-51c1-4c14-ad9c-c63a639fa00e ## Proposed Welfare System Overhaul A government-commissioned report by Alan Milburn recommends a major shift in Britain’s welfare system for those under 25. The plan aims to replace current health-related benefits with targeted employment support. This initiative seeks to move young people away from long-term dependency and toward active participation in the workforce. ## Targeting the NEET Population Nearly one million 16-24-year-olds in the UK are currently classified as NEET, meaning they are not in education, employment, or training. Official data shows a 3% rise in this group compared to last year. The proposed reforms aim to address this trend by prioritizing long-term life chances over immediate financial support. ## Shifting from Health Benefits Under the new proposals, young people would no longer claim the health element of Universal Credit or Personal Independence Payment. Instead, they would receive a basic allowance, with potential additional funds for specific condition-related costs. Those with severe disabilities unable to work would remain eligible for a higher-rate benefit. ## Investment in Employment Support The reform requires significant upfront investment to build a new system from scratch. Funding will be directed toward work placements, job subsidies, and one-to-one personal advisers. While the government anticipates long-term benefits, officials acknowledge that monetary savings for the state may not materialize for nearly a decade after implementation. ## The Carrot and Stick Approach The proposed system introduces conditional support, requiring young people to engage with training or work programs. Milburn emphasizes that entitlements must come with responsibilities, suggesting that benefits could be reduced if individuals fail to participate. This model mirrors strategies used in countries like Denmark and the Netherlands to improve employment. ## Learning from European Models Milburn and Work and Pensions Secretary Pat McFadden have studied systems in Denmark and the Netherlands. The Netherlands, which maintains a 4.8% NEET rate compared to Britain’s 13.6%, serves as a primary blueprint. The government is exploring devolved approaches, potentially empowering regional mayors to tailor support to local job market needs. ## Political and Financial Context Prime Minister Andy Burnham is expected to back the report, though it may face opposition from some Labour MPs. The reform arrives amid intense pressure to balance welfare spending with other national priorities like defense. Total welfare costs are projected to rise significantly, reaching £431 billion by the 2031/32 fiscal year. ## Impact on Existing Claimants Milburn has candidly stated that the transition will not be pain-free and will affect both new and existing claimants. Many individuals may receive less financial support initially than they do under the current system. The government maintains that this shift is necessary to stop trapping young people in cycles of poverty. ## Future Legislative Outlook The government intends to translate these recommendations into legislation in the new year. While the focus remains on investing in success rather than paying for failure, the policy represents a fundamental change in state philosophy. Success will depend on the effective implementation of regional support schemes and job guarantee programs. ## Sources covering this story - [iNews — UK Plans Major Welfare Reform for Young People with Health Conditions](https://inews.co.uk/news/under-25s-see-217-a-month-disability-benefits-axed-4877572) - [BBC News – Top Stories — UK Government Review Proposes Welfare Cuts for Under-25s](https://www.bbc.co.uk/news/articles/cwn70l1628l0o?at_medium=RSS&at_campaign=rss) - [BBC News — UK Government Review Proposes Benefit Cuts for Under-25s](https://www.bbc.co.uk/news/articles/cwn70l1628l0o?at_medium=RSS&at_campaign=rss) - [BBC News – UK — UK Government Review Proposes Welfare Cuts for Under-25s](https://www.bbc.co.uk/news/articles/cwn70l1628l0o?at_medium=RSS&at_campaign=rss) - [BBC News – Politics — UK Government Review Proposes Welfare Cuts for Under-25s](https://www.bbc.co.uk/news/articles/cwn70l1628l0o?at_medium=RSS&at_campaign=rss) - [The Independent – UK — Alan Milburn Proposes Radical Welfare Overhaul for Young People](https://www.independent.co.uk/news/uk/politics/sickness-benefit-pip-young-people-allowance-milburn-b3083512.html) - [HuffPost UK - Athena2 - All Entries (Public) — Proposed Welfare Cuts for Young People Spark Significant Political Backlash](https://www.huffingtonpost.co.uk/entry/alan-milburn-disability-benefits-young-people-neets_uk_6af5bf5ae4b0653429057e6f) - [The Independent – UK — UK Faces Surge in NEET Population Without Urgent Policy Reform](https://www.independent.co.uk/news/uk/politics/neets-crisis-welfare-lib-dem-analysis-b3084111.html) - [BBC News – Top Stories — Can Burnham Avoid Another Labour Welfare Rebellion?](https://www.bbc.co.uk/news/articles/c95y100nrm41o?at_medium=RSS&at_campaign=rss) - [BBC News – Politics — Can Burnham avoid another Labour welfare rebellion?](https://www.bbc.co.uk/news/articles/c95y100nrm41o?at_medium=RSS&at_campaign=rss) --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._