Downing Street has declined to rule out welfare reforms that would affect existing claimants, after the Government's independent reviewer of youth unemployment suggested some people could receive less financial support under his proposals.

No 10 said the UK cannot afford to "continue paying the cost of failure" when young people fall out of work, education or training, and should instead invest earlier in their success. But it would not guarantee that people already receiving benefits would be protected from any changes adopted after Alan Milburn's review is published next week.

What the Milburn review is proposing

Mr Milburn, the former Labour health secretary, was commissioned to review the issue of so-called Neets, 16 to 24-year-olds not in education, employment or training, which topped one million earlier this year for the first time in more than a decade. He has acknowledged his proposals will not be "pain-free", with some people potentially seeing reductions to their benefits entitlement.

According to a report in The Times, under-25s would no longer be able to claim the health element of universal credit or personal independence payments (Pip). They would instead move onto a "youth allowance", paid at the same level as the standard rate of universal credit, prompting campaigners and MPs to voice concerns over the extent of future support.

Asked about the report, a Downing Street spokeswoman said the Government would consider the recommendations "in full". She added: "The Prime Minister has already been clear that we need fundamental change in how we support young people to grow up in this country."

Pressed on whether the Government is committed to ensuring its reforms do not affect existing claimants, the official said: "I think we'll respond to the recommendations when the reports are published." No 10 insisted, however, that the "safety net" would be maintained for those unable to work.

The choice set out by No 10

The spokeswoman set out the Government's position in stark terms, saying: "As he has set out, we face a choice: we can either invest earlier in young people's success or pay the cost of failure through the benefit system, but we cannot afford to do both."

Statistics published earlier this month showed just under half, 45.3 per cent, of Neets were classed as disabled in the year to March, a proportion that has more than doubled in just over a decade.

Labour MPs voice concern

Opening the door to changes for existing claimants risks reigniting a row with Labour MPs who last year pressured Sir Keir Starmer's government to water down proposed welfare cuts, with protections for people already receiving Pip a key sticking point. Facing a major backbench rebellion, the Prime Minister ultimately shelved plans to tighten eligibility for the benefit at all in order to get the legislation through the Commons.

Labour MP Bell Ribeiro-Addy, who was part of the revolt that forced the Government to abandon proposals in summer 2025, expressed doubt about whether she would be able to vote for the plans set out so far. "I am not sure I could vote for cuts unless it's very clear what we're voting on," she told BBC Radio 4's Today programme. She said she did not believe "you get a disabled young person into work by taking away the money that helps them to get into work", noting that Pip is not an out-of-work benefit.

Labour MP Clive Lewis criticised Mr Milburn for revealing some of his proposals before they can be scrutinised in full, saying MPs were unable to answer questions from constituents about how they might be affected. Other Labour MPs, including Neil Duncan-Jordan, Rachael Maskell and Nadia Whittome, said there was not yet enough detail to judge the plans, and urged support without punitive sanctions.

Charities warn support must come first

Disability charities have also urged caution. The Joseph Rowntree Foundation said young disabled people "shouldn't have to trade financial security for better employment support", adding they "need both". James Taylor, executive director of strategy at disability equality charity Scope, said Pip "can be a lifeline", helping to cover extra costs such as taxis when transport is inaccessible, whether someone is in work or not.

Some 268,965 Pip claimants were classed as having autistic spectrum disorders as of 31 July 2026, according to data published in September by the Department for Work and Pensions. That is up from 79,395 in January 2019, when the data began, according to PA analysis.

Action for Children said existing claimants will "understandably be worried about today's reports", but that there was not enough detail available yet to understand who would gain, who would lose out and what protections would be in place for those facing the greatest barriers.