Local fund to replace Pip for most young disabled people under Milburn plans
Summary
Alan Milburn’s review is expected to propose replacing Personal Independence Payments and the health element of Universal Credit for most people under 25 with a youth allowance and a local fund for short-term disability-related costs. The proposals aim to expand work and education opportunities, but the Joseph Rowntree Foundation warned they could weaken financial support for young people with disabilities or health conditions.Key Facts
- People under 25 would no longer be able to claim Personal Independence Payments or the health element of Universal Credit under the proposed changes.
- A new youth allowance would be paid at the standard Universal Credit rate.
- Young people with disabilities could apply to a local fund for equipment and short-term costs, such as travel to training or a job interview.
- The local fund would be managed by advisers and designed to provide money quickly when needs arise.
- The proposals include a higher youth allowance for young people living independently, including care leavers.
- Young people with the most severe disabilities could receive an additional cost allowance, and those unable ever to work could receive higher insurance support.
- Milburn said the plans aim to create 440,000 employment and education opportunities by 2036 and raise young people’s net incomes by more than £2 billion.
- The Joseph Rowntree Foundation warned that the proposals could reduce vital support for young people with disabilities or health conditions.
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