Phil Smith, chair of Skills England, speaking to MPs (Image: UK Parliament)
DWP top officials have drawn attention to a widespread issue where people are not receiving any payments. The comments came as leaders from the department spoke to MPs about their work.
Senior members from Skills England spoke to the Work and Pensions Committee about their work to get more people into employment. Skills England is a new Government project officially launched in June 2025, to help bring together projects to provide people with better skills, to create more employment opportunities and so drive economic growth.
The group was originally part of the Department for Education but has now been incorporated into the DWP, from September 2025. One question put to the group was their work to get young people into work, with the number of young people not in education, employment or training not far off one million.
The committee asked: “What issues in the skills system might be contributing to that, and what is your body doing to address that?”
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A complex problem
Phil Smith, chair of Skills England, said this is a “complex” issue to address, but he pointed out that this group is not just people who are out of work on 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 be a major shortfall of income if you are not claiming any benefits you are entitled to.
Anyone over the age of 18 of working age can put in a claim for the means-tested benefit, as well as 16 or 17 year olds in some cases, such as if you have a health condition or disability, or if you care for someone who gets a health or disability-related benefit.
Through the benefit, you can get one standard allowance per household, which pays £338.58 a month for those single and aged under 25, or £528.34 for a couple where both of them are under 25.
The standard amount increases if you are aged 25 and over, paying £528.34 a month for single claimants and £666.97 for a couple who are both aged 25 and over.
More to do
Mr Smith spoke about what work his group is doing to address 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 gave an update about how it is increasing funding for its Youth Guarantee and the Growth and Skills Levy, which promises to provide support to one million young people, creating 500,000 opportunities for training and employment.
DWP minister Andrew Western told 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.”