DWP reforms could see young people lose Universal Credit and PIP in shake-up

Young people could lose benefit payments, including Universal Credit and Personal Independence Payment (PIP), or see payments slashed under new reforms being introduced by the Department for Work and Pensions (DWP).

Councils and mayors will be told to find young people aged between 18 to 21 who are either unemployed or on sickness leave to provide them either a job or training as part of a "youth guarantee" as part of a Labour Party government jobs push.

The government explained: "The third major problem is that nearly 1 million young people – a staggering 1 in 8 – are now not in education, employment or training. That is up 90,000 in over the last year alone. Young people struggling with poor mental health and lacking basic qualifications face the greatest disadvantages.

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"Each and every one should have their whole future ahead of them. Now these three challenges are all far worse in parts of the Midlands and the North. And they show the scale of the challenge this new Government must now confront."

The DWP plans to establish a new youth guarantee to offer training, an apprenticeship, or help to find work for all young people aged 18 to 21. Liz Kendall said: "And today, I can confirm that we will empower Mayors and local areas to take the lead in driving down economic inactivity and driving up economic opportunity – taking inspiration from the brilliant report we are here to launch today.

"Devolving powers from central Government is key to enabling areas to deliver ambitious new Local Growth Plans. And as part of this we will give local places the responsibility and resources to design a joined-up health, work and skills offer that’s right for local people."

Ms Kendall is expected to publish a three-point plan for getting Britain's youth back into the workplace.