The work and pensions secretary has backed the idea that the government should legally guarantee young people help to get into employment. Pat McFadden told the BBC that job support should be given a "legislative underpinning", adding the level of assistance on offer was currently "vague". It comes ahead of a review by former Labour cabinet minister Alan Milburn, which will recommend on Tuesday that under-25s should be guaranteed job placements or training and should no longer be able to claim the health element of universal credit or personal independence payment (Pip).
McFadden confirmed that some current benefit claimants would see their entitlement reduced when they are reassessed. He said the government planned to move younger claimants onto a new benefits system, and some would not receive “what they would get today”. Other claimants, such as those with long-term disabilities, would receive an increased amount.
Milburn said the government should divert money from the benefits system to boost work support, saying he wanted “billions” extra spent on help over the next decade. He said the temporary nature of schemes such as the Kickstart programme during the pandemic had made them less effective at reducing long-term joblessness. He said reduced entitlement for some should be accompanied by a new duty on government to provide jobs support, such as apprenticeships, college places, job coaching or a job.
Conservative shadow work and pensions secretary Helen Whately said her party backed reducing welfare spending but criticised the proposed legal guarantee, arguing that ministers should instead reduce taxes for employers to help youngsters find “real jobs”. She said it was “absurd” the government had increased taxes for employers to “subsidise things that look like jobs”.
How the new guarantee would work in practice is not yet clear, with McFadden saying it would have to be "carefully" drafted. The government also announced it will further widen eligibility for its scheme that offers jobless under-25s subsidised six-month job roles on the minimum wage, offering a role after 12 months of looking for work instead of 18 from next April.
Analysis
Why This Matters
- The proposals could change the welfare system for under-25s, moving from cash benefits to conditional work support, potentially reducing long-term youth unemployment.
- The benefit cuts for some claimants could reignite internal Labour divisions over welfare reform, after previous efforts were blocked by Labour MPs last year.
- The review recommends shifting billions from benefits to job support, representing a significant reallocation of public spending over the next decade.
Background
Alan Milburn, a former Labour cabinet minister, is leading a review into welfare and work for young people. The review follows a previous attempt by Prime Minister Sir Keir Starmer to reduce welfare spending, which was abandoned after Labour MPs rebelled. The current system includes Universal Credit and Personal Independence Payment (Pip) for disabilities, alongside temporary programmes like Kickstart.
Key Perspectives
Pat McFadden (Work and Pensions Secretary): Supports a legal guarantee of job support, saying the offer of help needs to be more firm and have a legislative underpinning.
Alan Milburn (Former Labour cabinet minister): Argues the government should divert billions from benefits to work support, end the health element of Universal Credit and Pip for under-25s, and introduce a duty on government to provide job placements or training.
Helen Whately (Shadow work and pensions secretary): Rejects a legal guarantee of work or training, saying it would be better to cut taxes and regulations on businesses to create real jobs; calls the current approach "absurd" for taxing employers to subsidise jobs.
What to Watch
- The response from Labour MPs when Milburn's recommendations are formally presented on Tuesday; a repeat of last year's rebellion could force the government to scale back.
- Detailed proposals for how the legal duty on government would be designed and enforced, to be set out in the government's response.
- The impact of widening the subsidised job scheme from 18 to 12 months of job seeking from next April.
Checked
12 claims in this story checked against 1 source: 11 supported.
Show each claim
- SupportedThe headline says McFadden backs a legal right to job support for young people.BBC News: “The work and pensions secretary has backed the idea that the government should legally guarantee young people help to get into employment.”
- SupportedThe headline and summary say the Milburn review is expected to recommend benefit cuts for under-25s, including no longer being able to claim the UC health element or PIP.BBC News: “His report is also expected to say that under-25s should no longer be able to claim the health element of UK-wide universal credit - or personal independence payment (Pip), the main disability benefit in England and Wales.”
- SupportedMcFadden said job support should have a “legislative underpinning”.BBC News: “McFadden said: "I do think we need some legislative underpinning to this."”
- SupportedMcFadden described the level of assistance currently on offer as “vague”.BBC News: “adding the level of assistance on offer was currently "vague".”
- SupportedMilburn’s review will recommend on Tuesday that under-25s be guaranteed job placements or training.BBC News: “which will recommend on Tuesday that under-25s should be guaranteed job placements or training to help them find permanent work.”
- SupportedMcFadden confirmed some current benefit claimants would have their entitlement reduced when reassessed.BBC News: “McFadden also confirmed that some current benefit claimants would see their current entitlement to benefits reduced when they are reassessed.”
- SupportedMcFadden said the government planned to move younger claimants onto a new benefits system.BBC News: “He confirmed that the government planned to move younger claimants onto a new benefits system when they undergo scheduled reassessment”
- SupportedMcFadden said some younger claimants would not receive “what they would get today”.BBC News: “some of them would not receive "what they would get today".”
- SupportedMilburn said he wanted “billions” extra spent on help over the next decade.BBC News: “adding he wanted to see "billions" extra spent on help over the next decade.”
- SupportedThe story says the temporary nature of schemes such as Kickstart during the pandemic made them less effective at reducing long-term joblessness.BBC News: “He added that the temporary nature of previous job support schemes, including the Kickstart programme during the Covid pandemic, meant that they had been less effective as reducing long-term joblessness.”
- SupportedWhately said it was “absurd” that employer tax increases were used to “subsidise things that look like jobs”.BBC News: “She added it was "absurd" the government had increased taxes for employers in order to "subsidise things that look like jobs".”
- Partly supportedThe government will offer eligible under-25s a subsidised job after 12 months of looking for work instead of 18, from next April.BBC News: “From next April, eligible claimants will be offered a role after 12 months of unsuccessfully looking for work, rather 18 currently.”