# Blunkett: cabinet must cut budgets for welfare reform

> A Labour peer says ministers need to find money for overhauling the welfare system ahead of a major review on young people out of work.
- Title: Blunkett: cabinet must cut budgets for welfare reform
- Summary: A Labour peer says ministers need to find money for overhauling the welfare system ahead of a major review on young people out of work.
- Keywords: david blunkett, alan milburn, andy burnham, welfare reform, neets, universal credit, personal independence payment, labour party, The Independent
- Source: The Independent — https://independent.co.uk/news/uk/politics/david-blunkett-andy-burnham-milburn-report-neets-welfare-unemployment-b3084343.html
- Published: 2026-11-13T10:09:13+00:00
- Read time: 1 min
- Topics: david blunkett, alan milburn, andy burnham, welfare reform, neets, universal credit, personal independence payment, labour party, politics, news
## Blunkett calls for budget cuts
Lord David Blunkett, a Labour peer and former home secretary, says cabinet ministers must accept cuts to their budgets to fund welfare system reforms. He made the intervention ahead of Alan Milburn's review.
## Milburn's big rewriting of welfare
Alan Milburn is publishing a review on Tuesday proposing major changes to welfare. According to the Times, young people would no longer claim sickness and disability benefits, moving instead to a youth allowance at standard…
## The Neets crisis in numbers
Milburn was commissioned to review Neets, those aged sixteen to twenty-four not in education, employment or training. The number topped a million earlier this year for the first time in more than a decade.
## Cost of inaction rising fast
Milburn has warned the Neets figure could rise to one in six by twenty thirty-one, representing one point two five million young people.
## Blunkett's precedent from 1998
Blunkett introduced a welfare-to-work programme in nineteen ninety-eight that helped long-term jobless youngsters into employment. He credits a windfall levy on private utilities introduced by Gordon Brown with providing upfront money that made the difference.

> Upfront money to 'spend to save', which worked.
## Charities and MPs voice concerns
Charities representing disabled people have expressed concern about the proposals. Labour MP Clive Lewis criticised Milburn for revealing details before full scrutiny, calling it irresponsible to generate fear and uncertainty through media interviews.
## Key takeaway

Lord David Blunkett says the government must accept budget cuts to fund welfare reforms, as Alan Milburn prepares to publish a major review of the Neets crisis.