No 10 eyes welfare overhaul for all working ages

Downing Street eyes broader welfare changes

The government is considering whether plans to replace disability benefits for under-25s with work and training should be expanded to older age groups, the Guardian has learned.

Participation first for all working ages

The prime minister and cabinet ministers are looking at applying the idea of participation first to all working ages, meaning spending billions more on workplace support while cutting or removing some disability benefits.

Political risk from past Labour rebellion

The move is risky given the difficulties Keir Starmer faced getting changes to health and disability benefits past the Labour parliamentary party last year, which led to a major U-turn.

Milburn review proposes under-25s changes

Alan Milburn will propose that under-25s should get training and support instead of the universal credit health element.

Cabinet ministers weigh broader application

Cabinet ministers have looked at whether Milburn's arguments can apply to over-25s, considering an intervention from the prime minister or Pat McFadden, the work and pensions secretary, within weeks after both reviews are published.

Larger savings but greater complexity

If expanded to over-25s, the changes could yield more savings as the cohort is much larger.

Funding concerns within government

There has been consternation within some government departments, including the Department of Health and the Department for Education, about where upfront funding for Milburn's extra support will come from within their budgets.

Milburn promises billions in new support

Milburn told the Guardian the support outlined in his report would create 440,000 employment and education opportunities by 2036 and raise the net incomes of young people by more than two billion pounds.

“I have not met a single young person who wanted to be Neet. Not one. They want independence, they want to earn their own money and they want someone to give them a chance.”

Charities warn of weakened safety net

The Joseph Rowntree Foundation said the proposals could significantly weaken the safety net for hundreds of thousands of young people with disability or health conditions, leaving many on universal credit living on about eighty pounds…

“Cutting someone's income when they're already struggling to afford food or the bus to college makes it harder for them to stay in education or find work.”

More than 40 charities oppose cuts

More than 40 UK leading charities warned ministers earlier this year against imposing tougher benefit sanctions or cuts on disabled young people, saying it risked pushing thousands of vulnerable youngsters deeper into poverty.

Government promises safety net protection

A government spokesperson said the prime minister has been clear that we need wholesale change in how we support young people, where we invest in their success rather than paying for failure, while ensuring a…