
Milburn calls for legal job or training guarantee for young people ahead of welfare report
Summary
- Alan Milburn's government review of youth unemployment and welfare proposes an "opportunity guarantee": a legal duty to give young people a job, training or employment support.
- Under-25s would lose personal independence payment and the universal credit health element, replaced by a youth allowance and a local fund for expenses and equipment.
- Almost one million young people in the UK are not in education, employment or training, and Milburn wants spending shifted from youth benefits into employment support.
- Milburn's full report is due on Tuesday; the government plans a statement in Parliament and draft laws early next year but has not committed to accepting it in full.
- Downing Street is considering extending the reforms to over-25s, while the report has already been delayed until after the budget.
Reactions
- Prime Minister Andy Burnham calls the report a "watershed moment" but declines a blanket assurance he will accept it in full.
- The Joseph Rowntree Foundation warns the changes could weaken the safety net, leaving many young disabled people on about £80 a week.
- Labour MP Bell Ribeiro-Addy says she is uneasy about cuts to disability benefits; Meg Hillier says she is giving Milburn a "fair wind".
- Reform UK's Robert Jenrick says the review is "pointless" unless Andy Burnham acts straight away.
- Lord Blunkett says money from cutting benefits should be reassigned to employment support, at least in the immediate future.
- TUC general secretary Paul Nowak warns against arbitrary benefit cuts and urges much greater investment in employment support.
Timeline newest first
Alan Milburn tells the BBC young people should have a legal guarantee of a job, training or employment support, with benefits at risk for those who refuse help; his report is due on Tuesday.
Prime Minister Andy Burnham calls Milburn's forthcoming report a "watershed moment" but declines to give a blanket assurance he would accept its recommendations in full.
Downing Street is considering expanding the overhaul of disability benefits for under-25s to older age groups, applying "participation first" to all working ages.
Milburn says the support outlined in his report would create 440,000 employment and education opportunities by 2036 and raise young people's net incomes by more than £2 billion.
Analysis reports the Labour mood is calmer than before last year's welfare rebellion, with former organisers Louise Haigh and Anneliese Midgeley now backing the government.
Milburn's review is reported to recommend replacing personal independence payments for most under-25s with a local fund for short-term expenses and equipment.
Downing Street declines to rule out the planned benefit changes affecting existing claimants.
Milburn's plan would move under-25s to a youth allowance and an additional cost allowance, with personal advisers coaching them into work, apprenticeships or college.
The government-commissioned review is expected to recommend moving under-25s off personal independence payment and the universal credit health element, with plans taken into legislation.
The Milburn report was delayed until after the budget over fears its welfare cuts would clash with the chancellor's tax and spending plans; the government has pledged £2.5 billion for youth employment support.
Andy Burnham says the government is aiming for "quite radical change" in support for young people, possibly including tougher benefit rules; the review's first part in May found one million young people not working or training.
The Milburn review is reported to be preparing an "opportunity revolution" for disabled young people, including state-subsidised jobs, Danish-style flexi-jobs and job carving; 45% of Neet young people are disabled.
Sources newest first
Young people should have legal guarantee of job or training, Milburn tells BBCIn an interview to air on Sunday, former Labour minister Alan Milburn tells the BBC young people should have a legal guarantee of a job, training or employment support — an "opportunity guarantee" — warning that those who refuse the help could lose benefits, and calling for spending to shift from youth benefits into employment support. His proposals, to be unveiled on Tuesday, are described by Prime Minister Andy Burnham as a "watershed moment", though he declines to commit to accepting them in full, while other parties from the Conservatives to the Greens offer varied responses.
No 10 considering expanding under-25s benefits overhaul to older age groupsDowning Street is weighing whether to extend plans to replace key disability benefits for under-25s with work and training support to all working ages, with cabinet ministers examining how the "participation first" idea could apply to over-25s ahead of Alan Milburn and Stephen Timms reviews. Government sources are split on whether the expansion will survive a Labour backlash, charities including the Joseph Rowntree Foundation warn of weakened safety nets, and the Guardian reports the move would be politically risky after last year's benefits rebellion.
Can Andy Burnham avoid another Labour welfare rebellion?Iain Watson's BBC News analysis weighs whether Andy Burnham can avoid a repeat of last year's welfare rebellion, when 120 Labour MPs threatened to derail Sir Keir Starmer's reforms and 49 still voted against the government. Alan Milburn is set to recommend cutting benefits for some 16-24 year olds receiving Pip or Universal Credit's health payment, but Watson reports the Labour mood is calmer, with former rebel organisers now backing the government and any uprising likely smaller.
Local fund to replace Pip for most young disabled people under Milburn plansThe Guardian exclusively reports that Alan Milburn's review of youth unemployment will recommend replacing personal independence payments for most under-25s with a local fund for short-term expenses and equipment, plus a new youth allowance. Milburn calls the benefits system a moral crisis that must be torn up, while the Joseph Rowntree Foundation, charities, and Labour MPs including Bell Ribeiro-Addy warn the changes would cut vital support, and Downing Street declined to rule out the changes affecting existing claimants.
Young people should get fewer welfare benefits, according to Milburn review on the workforce – UK politics liveAndrew Sparrow's live blog reports that the government-commissioned Milburn review on young people and work, running for a year, publishes its final report imminently, with proposals expected to remove under-25s' entitlement to sickness and disability benefits in favour of a standard-rate youth allowance. Among other news, prime minister Andy Burnham pledges climate leadership at Cop31, forecasts the world will breach the 1.5C target, and the Guardian reports the UK has appointed Madeline Alessandri as the world's first climate security representative.
Young people to no longer get main sickness benefit and PIP under Milburn review planAlan Milburn's welfare review proposes that under-25s lose entitlement to the health element of universal credit and personal independence payment, instead moving to a new 'youth allowance' and 'additional cost allowance', with expanded employment support and personal advisers to coach them into work, apprenticeships, or college. He says reform offers young people a better chance of a good life than short-term finances, though some could initially get less support; disability charity Sense backs helping young disabled people work but warns those who cannot could lose out without proper funding for specialist support.
Some under-25s should get fewer benefits, Milburn review to sayA government-commissioned review by Alan Milburn is expected to recommend moving under-25s off main sickness and disability benefits, instead giving them a basic universal credit-rate allowance, with some eligible for an additional cost allowance. The government plans to take the plans into legislation, with a safety net promised for the most vulnerable, though Labour MPs may resist.
Fixing UK’s youth jobs crisis demands much more investment, TUC boss warnsPaul Nowak, TUC general secretary, warns that fixing Britain's youth jobs crisis demands a drastic increase in investment in employment support rather than arbitrary benefit cuts, arguing the gains will outweigh the costs. Ministers expect Alan Milburn's review, due in the autumn, to recommend welfare cuts to fund job support for nearly a million young people not in education, employment or training, while the government has pledged £2.5bn for youth employment support.
Burnham aims for ‘quite radical change’ in support for young peopleThe Guardian reports Andy Burnham saying the government is aiming for 'quite radical change' in how young people are supported, which could include tougher benefit rules alongside more help with work and mental health, and calling a million or more young people in their 20s on benefits not good for anyone. Alan Milburn's first review found about one in eight young people, 1 million, were not working or in training, blaming structural factors including inequality and mental health, and his second review is expected to recommend limiting some benefits for those who refuse to engage.
Milburn review to call for jobs ’revolution’ for young people with disabilitiesA Guardian report previews the Milburn review's call for an 'opportunity revolution': state-subsidised paid jobs, a Danish-style 'flexi-job' scheme, and 'job carving' for disabled 16- to 24-year-olds, alongside targets and boosted support. About a million young people are Neet, 45% of them disabled, while Milburn's plan to fund job support from disability benefits faces pushback from campaigners and some Labour MPs.
Background newest first
‘The social contract is broken’: young people on feeling shut out of careersThe Guardian opens a new series that will follow eight young people's search for jobs with profiles of four graduates and school-leavers who feel shut out of work: Aamir, 25, on universal credit after a short publishing contract; Alice, 24, an Oxford and Cambridge graduate who has sent 50 tailored applications and been rejected even by a charity shop that headhunted her; Liam, 20, an autistic horticulture trainee told he lacks experience while he volunteers at community gardens; and Peter, 21, a computer science first who says AI has devastated entry-level tech roles. Aamir calls Britain's social contract broken, Liam urges employers to train people without experience and make reasonable adjustments, and the young people describe the toll on their mental health.
Bank of England’s Lombardelli warns UK’s ‘low-hire, low-fire’ labour market hurting young people – business liveThe Guardian's business live blog leads on Bank of England deputy governor Clare Lombardelli's warning that the UK's "low-hire, low-fire" labour market is hurting young people, with youth unemployment more than three times the aggregate rate and job-changing at its lowest since the financial crisis era. It also covers shareholders suing Nvidia and CEO Jensen Huang over an affair with an alleged Chinese spy, Jon Cunliffe's forecast of a coming market correction, Vodafone cutting 3,000 jobs while raising guidance, and shoppers stockpiling essentials after the government's Be Ready campaign.
Young people in UK hit by ‘low-gear economy’, warns Bank of England deputyThe Guardian interviews Clare Lombardelli, the Bank of England's deputy governor, who warns that young Britons are bearing the brunt of a 'low-gear economy': employers freezing hiring but not firing, hurting newcomers to the jobs market in sectors like retail and hospitality. Youth unemployment has hit its highest level outside the pandemic since 2015, nearly a million young people are not in education, employment or training, and Lombardelli says a further rate rise in December is plausible.
Tories pledge to slash £36 billion from UK welfare bill
The Conservatives are publishing measures to cut £36 billion from the UK welfare bill, with Kemi Badenoch set to tell the party's conference that the budget is "more than the entire GDP of Ukraine" and "crushing our economy". Their claims include £13.7 billion from reforming sickness and disability allowances, £9.5 billion from barring foreign nationals without EU settled status, £3.1 billion from reimposing the two-child benefit cap, which Labour dismantled the year before.
‘I just got AI emails rejecting my application – or no reply at all’: this is the soul-crushing reality of being a Neet | John HarrisJohn Harris's Guardian column profiles young UK Neets – Callum Atkinson, who despite strong A-levels made some 600 job applications and got only AI rejections or silence before a Manchester charity, Breakout, helped him into university, and Raihan Ali, twice bereft of work he was good at. Harris says the Neets he met just want a chance, endorses Alan Milburn's warning that the UK's 981,000 Neets risk becoming a lost generation, and reports that Milburn's final report is due imminently.