No 10 declines to rule out welfare reforms for existing claimants

Detailed summary

It comes after the Government’s independent reviewer of youth unemployment suggested some could receive less financial support under his proposals.

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 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.

Ahead of his report on youth unemployment next week, Alan Milburn has acknowledged his proposals will not be “pain-free”, with some people potentially seeing reductions to their benefits entitlement under the recommendations.

Under-25s would no longer be able to claim the health element of universal credit (UC) or personal independence payments (Pip), according to a Times report on some of the former Labour health secretary’s plans.

They would instead move on to 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.

No 10 declined to guarantee that existing claimants would not fall within the scope of any changes adopted following Mr Milburn’s review, but insisted the “safety net” would be maintained for those unable to work.

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

“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.

“As you know, our focus is on creating jobs and opportunity, not crude cuts that push young people into crisis and simply move costs elsewhere in the system.”

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