Left wing Labour MPs are gearing up to oppose disability benefit overhaul for young people

Andy Burnham’s government is potentially setting itself up for a big fight with its own MPs over proposals to radically overhaul the welfare system. Several Labour MPs have already come out publicly in opposition to what they expect to be proposed by the government.

According to reports, the government is set to bring forward changes to the welfare system in line with the recommendations of the former Labour minister Alan Milburn.

Milburn has produced a report – yet to be published – on young people who are not in education, employment or training (NEET). In that report he has recommended that under 25s should be made ineligible for key disability benefits – the personal independence payment (PIP) and the health element of universal credit.

In place of this, young people would instead be eligible for a new youth allowance paid at the standard rate of universal credit. Alongside this, Milburn’s recommendations would see a local fund for young people to apply for money to pay for equipment or with expenses to attend job interviews.

Milburn has said of his recommendations: “We need to tear up the old approach and start again for under-25s. A tweak to the benefits system just won’t do”.

Milburn’s report is set to be published next week. The detail of what the government will actually bring forward is also yet to be revealed, but it is expected to take the core elements of Milburn’s recommendations. Supporters of these measures argue that they are an important part of the strategy to reduce the number of young people who are currently NEET.

However, measures such as these are highly controversial, and there is brewing opposition to these proposals among Labour MPs.

Labour MP Neil Duncan-Jordan has written to Work and Pensions Secretary Pat McFadden urging the Government to protect the living standards of young disabled people ahead of its response to the Milburn Review.

On his letter, Duncan-Jordan said: “Young disabled people will not cease to be disabled if the support they rely on is withdrawn; they will simply be poorer disabled people”, later adding: “Benefit cuts and sanctions do not create jobs, but increase poverty and place greater pressure on the NHS, local councils and other public services – ultimately costing us more in the long run.”

Duncan-Jordan had the Labour whip suspended following his participation in the backbench rebellion against Keir Starmer’s attempt to slash disability benefits.

Richard Burgon – secretary of the left wing grouping of Labour MPs the Socialist Campaign Group – has posted on X: “I’ll reserve judgement until Alan Milburn’s full report comes out next week, rather than relying on today’s press coverage and interviews. But let’s be clear, cutting financial support for young disabled people and pushing many into poverty would not be acceptable.”

Left wing Labour MP Ian Byrne made similar comments. He said: “Young disabled people must never be an easy target for cuts. I’ll judge Alan Milburn’s full report next week, but any proposal that drives them into poverty will face my absolute opposition. A Labour Government should be fighting to eradicate poverty.”

Brian Leishman – also on the left of the party – has said: “Taking money off young disabled people who cannot work will not incentivise anyone into work. To think that it will, is ludicrous.”

Clive Lewis, who is a member of both the Socialist Campaign Group and the centre-left group Mainstream – which is close to and generally supportive of Burnham – was critical not just of the proposals, but of how they’ve been announced. He posted on X: “I’m deeply disappointed that Alan Milburn has chosen to discuss potentially life-changing welfare proposals in the media before his report has even been published or scrutinised by Parliament. This is not about Alan Milburn. It is about people’s lives.

“Young disabled people in Norwich South who rely on PIP to live independently or get to work are now understandably asking: “Am I going to lose the support I depend on?” And their MPs cannot give them an answer because we haven’t even seen the report.”

These comments were echoed by the former shadow chancellor John McDonnell, who said: “Whoever thought it would be a good idea to use the old Blairite/Alistair Campbell strategy of Milburn floating the idea of cuts in benefits in advance of the statement ?

“I will wait until we see the actual report and statement before commenting but to be absolutely clear I expect the government to uphold its commitment to no crude cuts. Preventing young people’s access to sickness and disability benefits will be interpreted by many as crude cuts.”

Nadia Whittome is also among those criticising the proposals. She said: “Cutting health and disability support will not create new jobs or help young people into work, and it would be disingenuous to pretend otherwise.

“This government must bring forward a plan to support young people into good jobs, without punitive sanctions. At the same time, it must recognise that young disabled people don’t stop existing between the ages of 16-24, and they need more – not less – social security.”

Other MPs are also reportedly concerned about the proposals coming forward.

Rachael Maskell – who was a key rebel on Starmer’s reforms and is a member of both the Socialist Campaign Group and Mainstream – told the BBC that withdrawing PIP from young people was “like a sledgehammer to crack a nut”.

Despite these public criticisms of the proposals, it appears that the government may be set to face a smaller rebellion than that which hit Starmer. According to a report in the Financial Times, a number of MPs who opposed Starmer’s reforms are more minded to the forthcoming proposals from the Burnham government.

Chris Jarvis is head of strategy and development at Left Foot Forward

Image credit: Simon Dawson / Number 10 – Creative Commons