The DWP leader said the situation is ‘really bad’
DWP senior officials have highlighted a significant problem where many thousands of people are failing to receive any payments. The remarks were made as department leaders addressed MPs regarding their work to address the issue.
High-ranking representatives from Skills England discussed their efforts to increase employment with the Work and Pensions Committee. Skills England is a new Government initiative officially launched in June 2025, designed to unite projects that enhance people’s skills, generate more job opportunities and so boosting economic growth. The organisation was initially under the Department for Education but has since been integrated into the DWP from September 2025.
One query posed to the group concerned their initiatives to get young people into employment, with the number of young people not in education, employment or training approaching one million. The committee enquired: “What issues in the skills system might be contributing to that, and what is your body doing to address that?”
Phil Smith, chair of Skills England, acknowledged this is a “complex” matter to tackle, but noted that this cohort isn’t made up simply of unemployed people claiming benefits. He said: “Around 300,000 people, I understand, are not even on benefits. 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.” This could represent a substantial loss of income if you’re not claiming benefits you’re entitled to.
Are you entitled to more DWP payments?
Anyone aged 18 or over of working age can submit a claim for the means-tested benefit. So can 16 or 17-year-olds in certain circumstances, such as those with a health condition or disability, or those who care for someone receiving a health or disability-related benefit.
Through the benefit, households can receive one standard allowance, which pays £338.58 a month for single claimants aged under 25, or £528.34 for a couple where both are under 25.
The standard amount rises for those aged 25 and over, paying £528.34 a month for single claimants and £666.97 for couples where both are aged 25 or over.
Mr Smith discussed the efforts his group is making to tackle unemployment among young people. He said: “We have announced a series of foundation apprenticeships and so on, so capabilities are there. However, by far that is not job done.
“We must make the system relevant for people where they are at that time – how they get pathways and on to these things.” The DWP also recently provided an update on its plans to increase funding for its Youth Guarantee and the Growth and Skills Levy.
DWP grant funding
This scheme pledges to offer support to one million young people, creating 500,000 opportunities for training and employment. DWP minister Andrew Western informed Parliament: “The Government is taking action to support employers to recruit and train young people, helping to unlock up to 200,000 more employment opportunities.
“This includes a new £3,000 Youth Jobs Grant for employers who hire 18 to 24-year-olds who have been on Universal Credit for over six months, a new £2,000 apprenticeship incentive for small and medium-sized employers hiring 16 to 24-year-old, and the Jobs Guarantee scheme, providing long-term unemployed 18 to 24-year-olds with a fully funded six month job.”
