Burnham plans tough welfare shake-up for young people

Andy Burnham is preparing a major overhaul of youth sickness benefits, with plans to make training or voluntary work a condition of receiving support as ministers search for billions of pounds to fund defence and social care.

The proposals would mark one of Labour's biggest welfare reforms yet, reopening a politically explosive debate over benefits while attempting to tackle Britain's rising economic inactivity.

Pressure Mounts to Cut the Welfare Bill

The proposed changes would require young people claiming sickness benefits to take part in training, work preparation or voluntary work or risk losing their payments. Ministers believe the reforms could help reduce the UK's £333bn welfare bill while encouraging more people back into employment.

The push comes as Burnham faces growing pressure to free up money for priorities including higher defence spending and a new social care system expected to cost around £18bn.

Dutch Model Offers Blueprint

Officials have been studying welfare systems in the Netherlands, Denmark, Germany and Australia, where benefit claimants are often required to engage with education, work programmes or community projects.

The Dutch model has attracted particular interest. Young claimants can be directed into activities ranging from repairing playgrounds to supporting elderly residents, with benefits linked to participation.

Youth Inactivity Sparks Alarm

Britain remains an outlier among major Western economies, with almost 700,000 more people out of work because of long-term illness than before the pandemic.

More than 430,000 people aged between 16 and 24 now claim sickness benefits, driven largely by rising diagnoses of conditions including anxiety, autism and ADHD. Many recipients face few work-related requirements once they begin receiving support.

Labour Faces Fresh Political Test

Any tightening of benefit rules risks reigniting divisions within Labour after Sir Keir Starmer's previous attempts to reform disability benefits triggered a major backbench rebellion.

Burnham has insisted he is not seeking "crude cuts" but wants stronger support tied to clearer expectations. He argues too many young people have been failed by a system that leaves them dependent on benefits instead of helping them into work.

The urgency has been reinforced by new figures showing almost 75,000 payroll jobs for 16 to 18-year-olds have disappeared since July 2024. A government review due in September is also expected to warn that around 80,000 teenagers have dropped out of education or training, prompting calls for a new national tracking system to stop young people disappearing into long-term unemployment.

Burnham to crack down on youth sickness benefits