Pat McFadden, the Work and Pensions Secretary, has provided an update on Personal Independence Payment (PIP) and Universal Credit cuts under the leadership of newly appointed Prime Minister Andy Burnham. Burnham, who succeeded Sir Keir Starmer last Monday, has already embarked on a swift policy agenda, including reducing bus fares to £2 and cutting VAT on electricity bills by £45.
New Campaign Targets NEETs
Burnham and McFadden have announced a fresh initiative to address the issue of young people not in education, employment, or training (NEETs). Speaking on Monday after the apprenticeship drive was unveiled as part of a major education overhaul, McFadden indicated that a significant system redesign is expected following the second stage of a report from Social Security Minister Stephen Timms and disability campaigners, due in the autumn. An interim report has already concluded that the current PIP criteria are not fit for purpose.
Alan Milburn's Review
The government is also anticipating the second part of Alan Milburn’s review, which focuses on youth unemployment and disengagement from education and training, to be delivered this autumn. Milburn stated: “A million young people are being failed by a system that isn’t creating the opportunities for them to progress in life. The world of work is changing and the education system isn’t keeping up.” He welcomed Burnham’s announcements as “a big step in the right direction” and consistent with his review’s findings, calling for a “whole system reset” across health, welfare, labour market, education, and skills.
Business Reaction
Kate Shoesmith, Director of Policy at the British Chambers of Commerce, commented: “Through our work on Local Skills Improvement Plans, we have seen the positive changes possible when all parts of the system work well together – employers, educators and local authorities. This announcement is another step in the right direction and is essential when 75% of firms trying to recruit tell us they have difficulty finding the people they need.” She added that a more collaborative system embedding businesses and labour market intelligence in schools from an early age is needed, and that giving Ofsted responsibility to assess how schools prepare children for work is a much-needed step. “For a long time now, we’ve argued that this is exactly the type of business-government partnership required,” she said.
Broader Policy Blitz
Burnham’s rapid policy moves since taking office also include measures to lower living costs and boost employment. The NEET campaign is part of a broader effort to reform welfare and education systems, with further changes expected from the Timms report and Milburn’s recommendations. The government is under pressure to address long-standing issues in the benefits system and youth opportunities, as statistics show many firms struggle to fill vacancies.
