Benefit cuts not the answer to rising number of young people out of work
3 mins read
Thursday 28 May 2026
Contact is cautioning against reducing financial support for severely disabled young people to address the rising numbers of young people out of work.
The independent Milburn Review’s interim report, published today, has revealed one million young people not in education, employment or training (NEET). Alongside that the report highlights increasing numbers of young people receiving health and disability-related benefits. This includes the Universal Credit health element.
The report argues that too many young people are being left without the right support to move towards education or employment where appropriate. Wider barriers facing young people include poor mental health support, school absence, lack of suitable jobs and difficulties during transition to adulthood.
Importantly, the report does not currently recommend removing the Universal Credit health element from disabled young people under 22. However, the review does discuss concerns about young people becoming trapped out of work. It is expected to continue looking at the benefits system as part of its final recommendations later this year.
The government launched the Milburn Review in December 2025 to investigate why so many 16–24‑year‑olds are NEET.
Contact’s response
Una Summerson, Head of Policy and Public Affairs at Contact, says:
“Many disabled young people receiving the Universal Credit health element are not simply ‘economically inactive’. Many are already in education, life-skills programmes, volunteering, social care provision or supported work. All while managing significant disabilities and health conditions. Contact is concerned that current data fails to properly recognise these forms of participation. As a result severely disabled young people risk being wrongly drawn into policies aimed at reducing NEET figures.
“We urge the Milburn Review not to unintentionally push severely disabled young people further away from education and employment by reducing the financial support that helps them participate. For many families, the transition from child to adult benefits already creates a substantial financial cliff edge. This is despite no reduction in care needs. Further cuts risk pushing disabled young people deeper into poverty, while shifting additional pressure and costs onto family carers and overstretched public services.”
What Contact wants to see
Contact supports better opportunities and personalised employment support for disabled young people who can and want to work.
Ensuring disabled young people can stay in education would be one of the best ways of assisting them into employment. But the existing rules mean that some disabled young people cannot claim Universal Credit if they remain in education. This is counter-productive, leading to some disabled young people abandoning education. These rules need to be revised.
Need advice or support?
Many families may feel worried by some of the discussion around disability benefits and economic inactivity. We want to reassure families that the report announces no immediate changes to benefits.
If you are worried about how future proposals could affect your family, we’re here to help. Visit our benefits advice pages, contact our free helpline or sign up for our campaigns updates for the latest information on any proposed changes.