{"id":127289,"date":"2026-10-21T08:00:00","date_gmt":"2026-10-21T07:00:00","guid":{"rendered":"https:\/\/en.econostrum.info\/uk\/?p=127289"},"modified":"2026-10-21T00:41:18","modified_gmt":"2026-10-20T23:41:18","slug":"1-million-young-people-without-employment","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/uk\/1-million-young-people-without-employment\/","title":{"rendered":"Nearly 1 Million Young People Without Employment, and a Major UK Benefits Overhaul Is Looming"},"content":{"rendered":"\n

Prime Minister Andy Burnham has described the situation as an \u201ceconomic catastrophe and moral failure\u201d, promising greater access to apprenticeships, training and employment opportunities. The government is preparing its response to an independent review led by former health secretary Alan Milburn<\/strong>, whose final recommendations are expected in November.<\/p>\n\n\n\n

Why Young People Receiving Disability Benefits Could Face Changes<\/strong><\/h2>\n\n\n\n

Around 960,000 people aged 16 to 24 are classified as not in education, employment or training, commonly known as NEETs<\/strong>. Approximately 39% are unemployed, while 61% are economically inactive, meaning they are not actively seeking work.<\/p>\n\n\n\n

According to The Guardian<\/a>, ministers are considering reforms to Universal Credit health payments and Personal Independence Payment (PIP), two benefits providing financial assistance to people with disabilities or long-term health conditions.<\/p>\n\n\n\n

One proposal under discussion would remove the health element <\/strong>of Universal Credit for under-25s and replace it with more intensive employment support. New claimants already experienced a reduction in the monthly health payment from \u00a3429 to \u00a3217 in April 2026.<\/p>\n\n\n\n

Changes to PIP eligibility are also being considered, although no final decisions have been announced. Milburn has indicated that young people with severe, complex and enduring disabilities would be protected from benefit reductions. Government figures show that annual spending on Universal Credit health payments for 16- to 24-year-olds stands at \u00a3800 million, compared with \u00a33.2 billion for PIP.<\/p>\n\n\n\n

Milburn argues that the existing system concentrates too heavily on financial assistance rather than helping young people enter employment. He estimates that for every \u00a31 spent on employment support, the Department for Work and Pensions (DWP<\/strong>) spends \u00a325 on benefits.<\/p>\n\n\n\n

The proposed changes have attracted criticism from disability campaigners, who warn that reducing financial support could increase hardship among young people already facing barriers to employment.<\/p>\n\n\n\n

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Employers tell us they want to give young people their first opportunity.

But taking on someone without experience comes at a cost.

Extending employers\u2019 NI relief to under-25s would help them say yes.

That\u2019s what our NEET Zero campaign is calling for. pic.twitter.com\/MP6CNBPnuK<\/a><\/p>— The Jobs Foundation (@TheJobsFndn) October 16, 2026<\/a><\/blockquote>