Top officials from the Department for Work and Pensions (DWP) have highlighted a pressing issue: many people are not receiving benefits or any payments, particularly among young people who are neither in education, employment, nor training (NEET). These concerns were raised during a session with MPs about ongoing efforts to address unemployment and improve skill development.
Skills England’s Role in Tackling Unemployment
In a discussion before the Work and Pensions Committee, senior members of Skills England outlined their efforts to improve employment opportunities and bridge the skills gap.
Skills England, a new government initiative launched in June 2025, works to coordinate various projects aimed at providing better skills training, creating job opportunities, and ultimately driving economic growth.
Originally part of the Department for Education, Skills England became integrated into the DWP in September 2025.
The Growing Problem of Youth Unemployment
One major issue discussed was the high number of young people not in education, employment, or training, which is nearing one million in the UK. The committee asked the group to address the contributing factors and how Skills England plans to support this vulnerable group.
Phil Smith, chair of Skills England, acknowledged the complexity of the issue, pointing out that many of the NEET individuals are not on benefits at all.
He stated, “Around 300,000 people are not even on benefits. That is 300,000 people who are not sitting and sponging off the state—they are actually not on benefits.
They are just not anywhere. That is really bad.” This highlights a critical gap, as these young individuals are not accessing the financial support they are entitled to.
Benefits Available for Young Adults
Anyone aged 18 and over who is of working age can apply for means-tested benefits, as well as 16 or 17-year-olds in certain situations, such as those with a health condition or disability, or those caring for someone receiving a disability-related benefit.
The Universal Credit system provides a standard allowance, which can range from £338.58 a month for singles under 25 to £666.97 for couples aged 25 and over, depending on age and circumstances. The lack of benefit claims among young people who are eligible adds to the economic challenges they face.
Government Efforts to Address Unemployment and Skills Training
Smith discussed ongoing efforts by Skills England to address youth unemployment, including the introduction of foundation apprenticeships. However, he emphasized that this is just the beginning, stating that the system must be more relevant to individuals’ needs at various stages of their lives.
In addition, the DWP has been increasing funding for initiatives like the Youth Guarantee and the Growth and Skills Levy. These programs aim to help one million young people, creating 500,000 opportunities for training and employment.
Ministerial Support and New Employment Incentives
DWP Minister Andrew Western also outlined several initiatives designed to support young people and employers. These include the £3,000 Youth Jobs Grant, which incentivizes employers to hire young people aged 18-24 who have been on Universal Credit for over six months.
Additionally, a £2,000 apprenticeship incentive is available for small and medium-sized employers hiring 16-24-year-olds, and the Jobs Guarantee scheme offers long-term unemployed 18-24-year-olds a fully funded six-month job.
Focus on Youth Employment and Support
As the government continues its efforts to tackle youth unemployment, the focus is on creating more pathways for young people to gain skills and enter the workforce.
The DWP’s support programs, such as the Youth Guarantee and financial incentives for employers, are crucial in addressing the growing issue of young people being left behind.
The ongoing work by Skills England and the DWP highlights a commitment to ensuring that all young individuals have access to the opportunities and support they need to succeed.
FAQs:
1. What is Skills England and what role does it play in addressing youth unemployment?
Skills England, launched in June 2025 and now part of the DWP, coordinates projects to improve skills, increase employment opportunities, and drive economic growth, particularly for young people.
2. Why are 300,000 young people not receiving benefits?
According to Skills England, about 300,000 young people are neither on benefits nor employed, and they are not engaged in education or training, which is concerning for their financial stability.
3. What benefits are available for young people under Universal Credit?
Young people aged 18 and over, or 16-17 in certain cases, can apply for means-tested benefits under Universal Credit, which provides financial support depending on age and circumstances.
4. How is the government supporting youth employment?
The DWP has introduced initiatives like the Youth Jobs Grant, apprenticeship incentives, and the Jobs Guarantee scheme to create more job opportunities and support young people aged 16-24.
5. What is the Youth Guarantee?
The Youth Guarantee is a DWP initiative aimed at helping one million young people by providing training and creating 500,000 employment opportunities through various programs.
