Tony Blair Institute proposes welfare reform for young people

The Tony Blair Institute for Global Change has proposed a major overhaul of the UK welfare system, recommending that cash benefits for individuals under 25 with non-work-limiting conditions, such as anxiety and depression, be discontinued. The institute suggests redirecting funds from Personal Independence Payment (PIP) and the health element of Universal Credit toward mental health treatment, skills training, and job placement programs.

The proposal aims to address the crisis of young people not in education, employment, or training (NEET), a group numbering approximately one million. The institute argues the current model encourages long-term inactivity. This comes as Alan Milburn conducts a government-commissioned review into youth unemployment, having previously described the situation as a “catastrophic system failure.”

Disability rights campaigners, including the charity Scope, have expressed concern that removing cash support could push vulnerable young people into poverty. They argue for increased investment in apprenticeships and flexible working rather than benefit reductions. Data from the Nuffield Trust highlights a significant rise in PIP claims for neurodiversity among 16 and 17-year-olds, which has increased scrutiny on how the welfare system evaluates mental health.