Young people under 25 would lose access to two main sickness and disability benefits under proposals in Alan Milburn's government-commissioned review, with a new youth allowance taking their place. The former Labour health secretary has acknowledged that some young people would receive less money, describing the changes as not "pain-free".

The year-long review, due to be published on Tuesday 17 November 2026, will recommend moving under-25s off the health element of Universal Credit and off Personal Independence Payment, known as PIP. Instead, they would receive an allowance paid at the standard rate of Universal Credit. Some could qualify for a new additional cost allowance to help with day-to-day costs linked to their conditions, but many claimants would receive less than they do under the current system.

Milburn was asked by the government to help reduce the number of 18- to 24-year-olds who are not in education, employment or training, a group known as NEETs. Around one in eight young people in that age range falls into the category, and figures from the Office for National Statistics for April to June suggest just under one million young people in the UK are NEETs.

What the Milburn review proposes

At the heart of the report is a proposal to take under-25s off the health element of Universal Credit and off PIP. They would instead receive a youth allowance, paid at the same basic rate as Universal Credit. A separate additional cost allowance would be available to some people to help meet the extra costs associated with a disability or long-term health condition.

People with the most severe disabilities, who cannot reasonably be expected to work, would receive a separate benefit paid at a higher rate, according to reports of the proposals. The detail of who qualifies for that higher rate, and how existing claimants would be moved across, has not yet been published.

Milburn told The Times that the changes would affect both existing and new claimants. "Candidly, it could mean that some people will get less financial support at the beginning of their benefit claim than under the current system," he said. He added: "I'm not saying that any of this will be easy or that it will be pain-free because it won't."

More support for work, alongside lower payments

The review is also expected to recommend an investment of billions of pounds in more employment support for young people, including work placements, job subsidies and one-to-one personal advisers. Milburn has said he will set out a "big rewriting of the welfare system" when he publishes the second part of his review next week, with more money spent on employment support.

The review was commissioned by former prime minister Sir Keir Starmer. Milburn, a Labour MP from 1992 to 2010, has argued that the balance of spending is wrong, with far more going on benefits than on helping young people into work. The government is set to take the recommendations forward into legislation in the new year, with major welfare reforms planned during 2027.

Nothing changes yet

It is important to be clear about the status of these proposals. The Milburn review makes recommendations to the government; it does not change the law by itself, and no payments change on publication day. The precise eligibility rules, transitional arrangements and protection for existing claimants remain unanswered questions until the full report is published on 17 November and the government responds.

The proposals are likely to prove controversial. They are expected to be backed by Prime Minister Andy Burnham, but they could face opposition among Labour MPs, who opposed welfare reform under his predecessor Sir Keir Starmer. Charities and disability groups are also expected to scrutinise the plans closely, particularly the effect on young people whose conditions limit how much they can work.

For now, young claimants should not assume their payments will change. Anyone concerned about a benefit claim should check the official guidance on GOV.UK and seek advice from a regulated adviser rather than relying on reports of proposals that have not yet become law.

Sources: BBC News and Radio News Hub.