Local fund to replace Pip for most young disabled people under Milburn plans

Alan Milburn’s review will recommend replacing personal independence payments for most disabled people under 25 with a local fund for short-term costs and equipment. The proposal is part of a broader overhaul intended to help young people into work or education, but charities and Labour MPs warn it could remove support that helps people remain independent and access opportunities.

Under the plans, under-25s would also be barred from claiming the health element of universal credit and would instead receive a youth allowance at the standard rate; those living independently would get a higher rate. Separate extra support would remain for people with the most severe disabilities. Milburn says the package could create 440,000 work and education opportunities by 2036 and raise young people’s net incomes by more than £2bn, while the Joseph Rowntree Foundation warns many could be left with basic support of about £80 a week.