‘No such thing as a free lunch,’ says Milburn as he warns it will take a decade for UK benefits bill to come down
A decade-long change
Speaking on the BBC’s Sunday With Laura Kuenssberg, Milburn said the government would need to be candid about the time required. He said it could not quickly resolve the crisis, and estimated that reducing the benefits bill and reaching a reasonable level of youth unemployment would take 10 years.
Milburn said cutting payments without other changes would not solve the problem. He argued that young people would instead appear elsewhere in government spending.
Proposals for under-25s
Milburn’s report is expected to promise almost half a million opportunities in work and education over a decade. It will also recommend broad changes to benefits for people under 25.
Those with the most severe needs would keep their entitlement. Most other under-25s would lose eligibility for Pip or the health element of universal credit and move to a new youth allowance at the standard universal credit rate.
Support and potential opposition
The Labour government expects opposition from MPs on the party’s left, who rebelled against Keir Starmer’s welfare reform plans last summer. The report also refers to extra-cost benefits, a local fund for short-term needs and more help to enter work.
Key points
- Milburn estimates the changes will take 10 years to lower the benefits bill and youth unemployment.
- He says crude benefit cuts would shift costs elsewhere in government.
- Most under-25s would lose eligibility for Pip or the health element of universal credit.