Surge in Young People Receiving Out of Work Benefits in the UK

More than 300,000 young people in the UK are now claiming out-of-work benefits without any requirement to seek employment, double the figure recorded five years ago. Recent government data shows that out of 8.36 million individuals claiming universal credit, 794,385 are aged between 16 and 24. Of these, over a third have been signed off from work, a significant rise compared to a fifth before the pandemic. This increase is largely attributed to a higher number of young people being classed as unable to work due to mental health concerns.

The number of under 25s registered on payrolls has fallen by 51,000 in the past year. Nearly 170,000 young claimants have official notes confirming that their health conditions are too severe to allow for employment or even employment preparation. This represents a sixfold rise compared to pre pandemic figures. Eligible claimants receive an additional £423 per month on top of the standard universal credit allowance of £317 for single individuals.

There has also been a notable increase in the number of people claiming personal independence payments. An additional 200,000 individuals have registered between January and October, raising the total to 3.9 million. Claims for mental health support under this scheme have tripled since 2019.

In response, ministers are considering substantial reforms to the welfare system, seeking to encourage youth employment. Earlier this year, the government reversed a proposal to cut disability benefits. Alan Milburn, a former health secretary, is leading a review aimed at reducing the number of young people not in education, employment, or training, a figure that now approaches one million. The review will address the significant rise in young people signed off due to mental health reasons.

Options being considered include reducing certain benefits for those under 22, with the potential savings redirected to incentivise employers. According to a government spokesperson, at the time of the last general election, there were already 270,000 young people claiming universal credit without work requirements, following a steady increase during and after the pandemic. The spokesperson emphasised a commitment to address longstanding issues in the welfare system, including eliminating disincentives to work, providing increased support through work coaches for sick and disabled claimants, and ensuring the future fairness of personal independence payments.

The Centre for Social Justice notes that all key indicators related to young people and universal credit continue to rise. The organisation advocates for the expansion of the youth guarantee, proposing that anyone between 18 and 21 claiming benefits for 18 months should be guaranteed either subsidised training or employment.