UK Labour may scrap benefits for under 25s

The Telegraph reports:

People under the age of 25 would be barred from claiming unemployment benefits under proposals being considered by the Labour Party.

The Institute for Public Policy Research will publish a paper later this week proposing a new means-tested “youth allowance” for 18 to 24-year olds who are not in work or education.

Only those who prove they are in “purposeful” training or carrying out an “intensive” job search would be eligible for the allowance, the group will say.

The allowance would be dependent on family income, with the children of parents earning more than £25,000 a year unable to claim it, the IPPR will suggest.

The youth allowance would be set at £56.80, the same level as Job Seekers’ Allowance.

Under-25s would be banned from claiming additional benefits including Employment Support Allowance and Income Support. Paying those two benefits to under-25s costs taxpayers almost £1.3 billion a year.

It is understood that Rachel Reeves, the Labour shadow work and pensions secretary, is considering adopting the policy, though is undecided about applying a means test.

Ed Miliband, the Labour leader, has also hinted at taking young people out of the benefits system.

Good on . But can you imagine NZ Labour ever adopting such a policy? They have opposed almost every single aspect of the reforms designed to prevent long-term benefit dependency.

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