The Prime Minister has unveiled his first major intervention to reduce the Department for Work and Pensions (DWP) benefits bill, focusing on getting more young people into work. Andy Burnham, the Makerfield MP, is linking schools with employers to tackle the rising number of young people not in education, employment, or training (NEET).
A 12-Year High in Youth Unemployment
According to the Milburn Report, approximately 1,012,000 young people were classified as NEET in early 2026, marking a 12-year high. This figure underscores the scale of the challenge facing the government as it seeks to reform welfare and boost economic productivity.
Mr Burnham, drawing on his experience as Greater Manchester mayor, has promised DWP reforms to move people off benefits and into the workforce. His first intervention, as reported by the Financial Times, will centre on providing better support for young people to find jobs.
National Grid's Landmark Commitment
On Tuesday, August 4, the government confirmed a significant step forward. National Grid has announced a major commitment to support 5,000 young people who are NEET over the next five years. This makes it one of the first major employers to respond to the Prime Minister's drive to help more young people into work.
Mr Burnham said: "Last week, we announced fundamental reforms to the education system to ensure there’s parity between academic and technical routes – giving all young people the chance to a clear path in life. A key part of this is matching employers to young people to ensure they get the skills, technical knowledge and experience they need."
Government's Determination to Fix the Crisis
He added: "National Grid’s announcement is exactly the kind of response we want to see. Not only are they powering our country every day, but they’re putting real energy behind helping thousands of young people gain skills, build confidence and take their first steps into work. We’re determined to fix the youth unemployment crisis and restore opportunity and hope across the country."
The Prime Minister told the BBC that some young people had been "quite seriously let down because the support wasn’t there for them", while also signalling that some support may become conditional on "people taking opportunities that are presented in front of them". This suggests a potential shift towards more conditionality in the welfare system.
Impact on the Benefits Bill and Beyond
The move is part of a broader strategy to reduce the DWP benefits bill, which has been a key priority for the government. By integrating education and employment systems, the aim is to create a more seamless pathway from school to work, reducing the number of young people reliant on benefits.
Critics may question the effectiveness of such voluntary commitments, but the government argues that partnerships with major employers like National Grid are essential to delivering meaningful change. The announcement also aligns with the Milburn Report's recommendations, which called for urgent action to address the NEET crisis.
Future Steps and Conditionality
As the government continues to develop its welfare reform agenda, further announcements are expected. The emphasis on conditionality could see more stringent requirements for benefit claimants, particularly young people, to engage with available opportunities.
Mr Burnham's approach, informed by his time in Greater Manchester, where he oversaw significant investment in skills and employment programmes, is likely to be closely watched. The success of this initiative could set a precedent for how the government tackles youth unemployment and welfare dependency.
