New DWP figures reveal stark employment gap for young claimants
Fewer than 1% of 16 to 25-year-olds receiving sickness-related benefits move into employment each month, according to new figures from the Department for Work and Pensions (DWP). This rate is slightly lower than among claimants aged over 55, sparking fears of a growing economic and social challenge.
Labour minister warns of 'trapped' generation
Labour Party Work and Pensions Secretary Pat McFadden warned that too many young people are becoming trapped in the welfare system, creating a heavy cost for both individuals and taxpayers. Around 1,600 young people leave sickness benefits for work each month. More than one million young people are now not in employment, education or training, meaning roughly one in eight under-24s are economically inactive.
“Being signed off and written off is not good enough,” Mr McFadden said. He described the problem as “long-term and deep seated”, adding: “Most young people want to work and they need more opportunity and more education and training for the way the economy is changing.”
Former health secretary calls situation 'economic catastrophe'
Former Labour health secretary Alan Milburn, who is leading a review into youth worklessness, described the situation as an “economic catastrophe” and a “moral crisis”. Mr McFadden urged politicians and businesses alike to treat the rising youth unemployment figures as a “call to action”, emphasising that the problem “has been growing for years, with a human and financial cost which concerns us all”.
“The system should always be there for those who can never work, but for everyone else benefits should be a bridge to participation,” the DWP minister said.
Separate review finds PIP 'no longer fit for purpose'
A separate review led by disability minister Sir Stephen Timms concluded that Personal Independence Payment was “no longer fit for purpose”. Mr McFadden insisted the government should guarantee young people “a productive and positive future” rather than merely helping them “keep body and soul together”.
