A senior figure at Skills England has described as “really bad” the situation facing approximately 300,000 young people who are not in employment and are failing to claim any benefits whatsoever. The admission came during a session before the Work and Pensions Committee, where leaders from the newly formed government body were questioned about their efforts to reduce youth unemployment.
Skills England, launched in June 2025 and incorporated into the Department for Work and Pensions from September of that year, was established to coordinate training and employment opportunities with the aim of driving economic growth. Its appearance before the committee came against the backdrop of the number of young people not in education, employment or training approaching one million.
A Problem beyond Benefits
Phil Smith, chair of Skills England, was keen to draw a distinction between those young people claiming out-of-work benefits and those who have fallen away from support structures entirely. “Around 300,000 people, I understand, are not even on benefits,” he told MPs. “That is 300,000 people who are not sitting and sponging off the state, as people like to say — they are actually not on benefits. They are just not anywhere. That is really bad.“
The remarks highlight a significant shortfall in financial support for a cohort who may be entitled to Universal Credit but are not claiming it. The means-tested benefit is available to those aged 18 and over of working age, and in some cases to 16 and 17-year-olds, for instance, those with a health condition or disability, or those caring for someone in receipt of a health or disability-related benefit.
Current standard allowances stand at £338.58 a month for single claimants under 25, rising to £528.34 for couples where both partners are under that age. For those aged 25 and over, the rates increase to £528.34 for single claimants and £666.97 for couples.
Government Pledges Action
Smith acknowledged that addressing youth unemployment is a complex challenge and that progress, while underway, remains far from complete. “We must make the system relevant for people where they are at that time — how they get pathways and on to these things,” he said, pointing to a series of foundation apprenticeships already announced.
The DWP has outlined a broader package of measures aimed at tackling long-term unemployment among young people. DWP minister Andrew Western told Parliament the government intends to unlock up to 200,000 more employment opportunities, with measures including a £3,000 Youth Jobs Grant for employers who hire 18 to 24-year-olds who have been on Universal Credit for over six months, and a £2,000 apprenticeship incentive for small and medium-sized employers taking on 16 to 24-year-olds.
A Jobs Guarantee scheme will also provide long-term unemployed 18 to 24-year-olds with a fully funded six-month placement. Separately, the government’s Youth Guarantee and Growth and Skills Levy are intended to create 500,000 training and employment opportunities, with support reaching one million young people.
