The Department for Work and Pensions (DWP) has highlighted a significant issue where hundreds of thousands of people are failing to receive any payments they may be entitled to. Speaking before the Work and Pensions Committee, senior officials addressed the problem, which affects a large number of young individuals not in education, employment, or training (NEET).
Skills England's Role and Challenges
Skills England, a government initiative launched in June 2025 and integrated into the DWP from September 2025, aims to enhance skills, create job opportunities, and boost economic growth. Its chair, Phil Smith, acknowledged the complexity of the situation when questioned about the rising NEET numbers, which are approaching one million. He stated that approximately 300,000 young people are not even registered for benefits, contrary to the perception that they are 'sponging off the state'. Smith described this as 'really bad', noting that these individuals are essentially invisible to the system.
Universal Credit Entitlements
Universal Credit is available to working-age adults, including 16- and 17-year-olds with health conditions or caring responsibilities. The standard allowance ranges from £338.58 per month for single claimants under 25 to £666.97 for couples aged 25 and over. Many eligible individuals may be missing out on these payments, representing a significant loss of income.
Government Initiatives to Tackle Youth Unemployment
Smith emphasised the need to make the skills system relevant and accessible, mentioning foundation apprenticeships as a step forward but acknowledging that more work is needed. The DWP has announced increased funding for the Youth Guarantee and the Growth and Skills Levy. Minister Andrew Western confirmed a new £3,000 Youth Jobs Grant for employers hiring 18- to 24-year-olds on Universal Credit for over six months, a £2,000 apprenticeship incentive for SMEs hiring 16- to 24-year-olds, and a Jobs Guarantee scheme providing six-month paid positions for long-term unemployed young people. These measures aim to unlock up to 200,000 additional employment opportunities and support one million young people.
