The Department for Work and Pensions (DWP) has issued a warning that hundreds of thousands of households are missing out on financial support. Phil Smith, chair of Skills England, addressed the Work and Pensions Committee regarding the nation's unemployment statistics. The discussion focused on NEETs—individuals not in education, employment, or training—and other jobless citizens.
Complex Issues in the Skills System
When questioned about the skills system's role in unemployment, Mr. Smith described it as a "complex" challenge. He stated: "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." He added: "They are just not anywhere. That is really bad."
Mr. Smith emphasized the need for tailored pathways: "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."
Government Action to Tackle Worklessness
DWP minister Andrew Western informed Parliament that the Labour government is committed to reducing worklessness. He told the Committee: "The Government is taking action to support employers to recruit and train young people, helping to unlock up to 200,000 more employment opportunities."
Mr. Western highlighted several initiatives: "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-olds, and the Jobs Guarantee scheme, providing long-term unemployed 18 to 24-year-olds with a fully funded six month job."
These measures aim to address the significant number of people not currently receiving benefits and provide them with pathways into employment or training.
