Milburn Plan Targets Disabled Youth Jobs

Alan Milburn, a former Labour cabinet minister, will recommend that the British government create and pay for jobs for thousands of disabled young people. His review on youth employment is scheduled to deliver its final findings this month. The core proposal involves state subsidies for employers who hire individuals aged 16 to 24 with disabilities or chronic illnesses. The plan aims to reverse long-standing discrimination in the labor market by introducing flexible work arrangements and intensive skills support.

The review addresses a workforce gap that has widened since the pandemic. Currently, approximately one million young people are classified as Neet, meaning they are not in education, employment, or training. Nearly half of this group are disabled or in ill health. Disabled young people are three times as likely to be Neet as their non-disabled peers. Milburn described this rising number as both a moral and economic crisis, warning that inaction risks creating a lost generation.

The report proposes adopting a Danish-style flexi-job scheme. This model would guarantee employment for disabled participants while allowing them to set their own working hours. Some individuals might start with as few as four hours per week. The government would top up their wages to ensure financial stability. The flexible approach acknowledges fluctuating medical conditions and the lack of prior work experience, recognizing that part-time roles help build confidence.

Milburn also advocates for job carving, a method that splits the component parts of a single entry-level role into separate positions. For example, a retail job that includes stock-filling, till work, and locking up could be divided into three distinct opportunities. This strategy allows young people to focus on tasks that align with their specific strengths and limitations. The review notes that many businesses are unlikely to create these opportunities without direct government support.

The financial side of the proposal suggests reallocating some of the four billion pounds spent annually on disability benefits for young people. This funding would be redirected toward comprehensive employment and training support. The government has stated it will not endorse crude cuts to benefits, but the proposal may face resistance from campaigners and backbench Labour MPs. They argue that reducing disability benefits could push many young people into poverty.

The final report will urge large employers to voluntarily adopt employment targets for disabled 16- to 24-year-olds. It is expected to stop short of recommending statutory quotas but aims to encourage private sector engagement. The plans call for a boost in job support services, including supported internships, placements, specialist job matching, and coaching. The report draws parallels to the postwar Remploy scheme, which provided state-funded sheltered employment for disabled ex-service personnel.

At its height, Remploy operated 90 factories across the UK, with the last one closing in 2013. Milburn has been critical of the limited ambitions of existing government job support programmes. He has previously called for turbo-charging specialist internships for young people with special educational needs transitioning from school and college. The final report seeks to ensure the support system is strong enough to facilitate a genuine revolution in youth employment opportunities.