Government must avoid crude benefits cuts - New Economics Foundation

The New Economics Foundation (NEF) reacts to news the Milburn review is expected to recommend young people are moved off main sickness and disability benefits

George Bangham, head of social policy at NEF, said:

"We welcome more employment support for young people who are out of work, but this should not come at the expense of people with health conditions or disabilities who rely on income from benefits. The government must avoid "crude cuts" to the benefits system which would push people further into poverty - and won't create jobs where they don't exist. The biggest barrier to youth employment is a lack of jobs: 84% of NEETs want to work or train, but job vacancies are at their lowest level outside the pandemic since 2014.

"The government should reject the false choice between funding employment support and funding benefits. Support could be funded by reforming Capital Gains Tax to raise £19.7bn this parliament. The focus should be on creating good-quality, long-term jobs and helping young people into them - which, over time, will bring down public spending on social security."