benefits
Published 12 Nov 2026
3 min read
Major welfare review due next week: What can we expect?
The government’s long-awaited review into the welfare system will be unveiled on Tuesday - and getting more young people into education, employment and training is set to be at its heart.
Published: 12 November 2026
So what’s actually likely to be announced?
What we know so far
The Times is reporting that Alan Milburn, the former Labour health secretary who’s leading the review, will recommend changing the system so under-25s can’t claim the health element of universal credit or personal independence payment (PIP).
Instead, they’d be moved on to a new “youth allowance”, which would be paid at the same level as the standard rate of universal credit.
Those who received PIP, meanwhile, will be moved on to a new “additional cost allowance” that would cover day-to-day costs related to their conditions.
People who can’t work at all because of a disability would get a new benefit paid at a higher rate.
The Milburn review is also expected to recommend more investment into employment support for young people.
This would include one-to-one personal advisers, job subsidies and work placements.
Nearly a million 16 to 24-year-olds - one in eight - aren’t currently in education, employment or training.
Young people face barriers to work
Another issue that’s likely to be high on the agenda is changing attitudes among employers and creating an environment where young people can get their foot in the door.
Mr Milburn’s interim report, published back in May, stressed that many of those trying to find work feel they have no alternative but to rely on benefits, as entry thresholds have risen while entry-level opportunities are getting harder to find.
For example, it said young people often spend hours filling in individual applications but get no response or feedback, while employers are often demanding experience for entry-level jobs.
“These are not the actions of a generation that has opted out,” the report said.
“They are the responses of a generation that is trying, repeatedly, and failing to gain entry.”
At the same time, the interim report pointed out that stereotypes about young people being lazy and workshy mean they’re often rejected by employers just because of their age, which in turn creates a “negative feedback loop”.
Welfare system ‘doesn’t prioritise longer-term life chances’
Speaking to the Times, Mr Milburn acknowledged that his proposed changes would lead to some young people getting less financial support at the beginning of their benefit claim.
However, he said the reforms would lead to a greater focus on their longer term life chances rather than their immediate shorter-term finances.
“The current system prioritises the latter over the former,” he said.
“I believe that’s the wrong choice and it needs to be the other way around.”
Will the review’s recommendations actually be implemented?
That’s a big question, as the government tried to bring in cuts to disability benefits just last year, but was forced to back down following strong backbench opposition.
And it’s possible many Labour MPs might again be reluctant to vote for the measures that are being put forward.
So we’ll be keeping a close eye on upcoming debates in parliament and here to let you know what’s going on.
James has spent almost 20 years writing news articles, guides and features, with a strong focus on the legal and financial services sectors.
Published: 12 November 2026
The information in this post was correct at the time of publishing. Please check when it was written, as information can go out of date over time.
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