Asked by: Baroness Stedman-Scott (Conservative - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government what assessment they have made of PwC’s Youth Employment Index, particularly the finding that the United Kingdom has fallen four places to rank 27th out of 38 for youth employment outcomes among Organisation for Economic Co-operation and Development (OECD) member countries.
Answered by Baroness Sherlock - Minister of State (Department for Work and Pensions)
The Government has reviewed the PWC Youth Employment Index report. With 1 in 8 young people not in education, employment or training (NEET), the number of young people who are NEET has been rising too long. At Budget, we announced more than £1.5 billion of investment over the next three years, funding £820m for the Youth Guarantee to support young people to earn or learn, and an additional £725 million for the Growth and Skills Levy.
Through the expanded Youth Guarantee, young people aged 16-24 across Great Britain are set to benefit from further support into employment and learning. The details of that support are:
Support to find a job: For young people on Universal Credit who are looking for work, we are introducing a new Youth Guarantee Gateway, which over the next three years will offer nearly 900,000 16–24-year-olds a dedicated session, followed by four weeks of additional intensive support with a Work Coach. This new support will identify specific work, training, or learning opportunities locally for each young person and ensure they are supported to take those up.
Further Expanding Youth Hubs: We are establishing Youth Hubs in over 360 locations so that all young people – including those not on benefits – can access opportunities and wider support in every local area of Great Britain. Youth Hubs will bring together partners from health, skills and the voluntary sector, working closely with Mayors and local authorities to deliver joined-up community-based support.
Creating c300,000 opportunities for workplace experience and training: We will create up to 150,000 additional work experience placements and up to 145,000 additional bespoke training opportunities designed in partnership with employers, including the number of our Sector-based Work Academy Programmes (SWAPs). At the end of each SWAP, employers offer a guaranteed job interview to participants.
Guaranteeing jobs: For long-term unemployed 18–21-year-olds on Universal Credit, the Jobs Guarantee scheme will provide six months of paid employment. This will reach around 55,000 young people over the next three years
Preventing young people from becoming NEET: We are making it easier to identify young people who need support, by investing in better NEETs data sharing, further education attendance monitoring, and new risk of NEET data tools giving local areas more accurate insights to target support where it's needed most. We are also investing in work experience opportunities for young people at particular risk of becoming NEET, focused on pupils in state-funded Alternative Provision settings, (education provided outside mainstream or special schools for children who cannot attend a regular school—often due to exclusion, health needs, or other circumstances).
This builds on measures announced in the Post-16 Education and Skills White Paper earlier this autumn. To make sure young people move smoothly from school into post-16 education or training, we are working with schools to improve support for transitions and piloting automatic enrolment at Further Education providers for those without a confirmed place. This will make it easier for young people to stay on in education and succeed later in life.
Asked by: Baroness Stedman-Scott (Conservative - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government what assessment they have made of the finding in PwC’s Youth Employment Index that the youth-to-adult unemployment ratio in the United Kingdom is now the highest on record across the Organisation for Economic Co-operation and Development (OECD) countries.
Answered by Baroness Sherlock - Minister of State (Department for Work and Pensions)
The Government has reviewed the PWC Youth Employment Index report. With 1 in 8 young people not in education, employment or training (NEET), the number of young people who are NEET has been rising too long. At Budget, we announced more than £1.5 billion of investment over the next three years, funding £820m for the Youth Guarantee to support young people to earn or learn, and an additional £725 million for the Growth and Skills Levy.
Through the expanded Youth Guarantee, young people aged 16-24 across Great Britain are set to benefit from further support into employment and learning. The details of that support are:
Support to find a job: For young people on Universal Credit who are looking for work, we are introducing a new Youth Guarantee Gateway, which over the next three years will offer nearly 900,000 16–24-year-olds a dedicated session, followed by four weeks of additional intensive support with a Work Coach. This new support will identify specific work, training, or learning opportunities locally for each young person and ensure they are supported to take those up.
Further Expanding Youth Hubs: We are establishing Youth Hubs in over 360 locations so that all young people – including those not on benefits – can access opportunities and wider support in every local area of Great Britain. Youth Hubs will bring together partners from health, skills and the voluntary sector, working closely with Mayors and local authorities to deliver joined-up community-based support.
Creating c300,000 opportunities for workplace experience and training: We will create up to 150,000 additional work experience placements and up to 145,000 additional bespoke training opportunities designed in partnership with employers, including the number of our Sector-based Work Academy Programmes (SWAPs). At the end of each SWAP, employers offer a guaranteed job interview to participants.
Guaranteeing jobs: For long-term unemployed 18–21-year-olds on Universal Credit, the Jobs Guarantee scheme will provide six months of paid employment. This will reach around 55,000 young people over the next three years
Preventing young people from becoming NEET: We are making it easier to identify young people who need support, by investing in better NEETs data sharing, further education attendance monitoring, and new risk of NEET data tools giving local areas more accurate insights to target support where it's needed most. We are also investing in work experience opportunities for young people at particular risk of becoming NEET, focused on pupils in state-funded Alternative Provision settings, (education provided outside mainstream or special schools for children who cannot attend a regular school—often due to exclusion, health needs, or other circumstances).
This builds on measures announced in the Post-16 Education and Skills White Paper earlier this autumn. To make sure young people move smoothly from school into post-16 education or training, we are working with schools to improve support for transitions and piloting automatic enrolment at Further Education providers for those without a confirmed place. This will make it easier for young people to stay on in education and succeed later in life.
Asked by: Baroness Stedman-Scott (Conservative - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government what steps they are taking in response to the findings of PwC’s Youth Employment Index to strengthen school-to-work and university-to-work transitions for young people.
Answered by Baroness Sherlock - Minister of State (Department for Work and Pensions)
The Government has reviewed the PWC Youth Employment Index report. With 1 in 8 young people not in education, employment or training (NEET), the number of young people who are NEET has been rising too long. At Budget, we announced more than £1.5 billion of investment over the next three years, funding £820m for the Youth Guarantee to support young people to earn or learn, and an additional £725 million for the Growth and Skills Levy.
Through the expanded Youth Guarantee, young people aged 16-24 across Great Britain are set to benefit from further support into employment and learning. The details of that support are:
Support to find a job: For young people on Universal Credit who are looking for work, we are introducing a new Youth Guarantee Gateway, which over the next three years will offer nearly 900,000 16–24-year-olds a dedicated session, followed by four weeks of additional intensive support with a Work Coach. This new support will identify specific work, training, or learning opportunities locally for each young person and ensure they are supported to take those up.
Further Expanding Youth Hubs: We are establishing Youth Hubs in over 360 locations so that all young people – including those not on benefits – can access opportunities and wider support in every local area of Great Britain. Youth Hubs will bring together partners from health, skills and the voluntary sector, working closely with Mayors and local authorities to deliver joined-up community-based support.
Creating c300,000 opportunities for workplace experience and training: We will create up to 150,000 additional work experience placements and up to 145,000 additional bespoke training opportunities designed in partnership with employers, including the number of our Sector-based Work Academy Programmes (SWAPs). At the end of each SWAP, employers offer a guaranteed job interview to participants.
Guaranteeing jobs: For long-term unemployed 18–21-year-olds on Universal Credit, the Jobs Guarantee scheme will provide six months of paid employment. This will reach around 55,000 young people over the next three years
Preventing young people from becoming NEET: We are making it easier to identify young people who need support, by investing in better NEETs data sharing, further education attendance monitoring, and new risk of NEET data tools giving local areas more accurate insights to target support where it's needed most. We are also investing in work experience opportunities for young people at particular risk of becoming NEET, focused on pupils in state-funded Alternative Provision settings, (education provided outside mainstream or special schools for children who cannot attend a regular school—often due to exclusion, health needs, or other circumstances).
This builds on measures announced in the Post-16 Education and Skills White Paper earlier this autumn. To make sure young people move smoothly from school into post-16 education or training, we are working with schools to improve support for transitions and piloting automatic enrolment at Further Education providers for those without a confirmed place. This will make it easier for young people to stay on in education and succeed later in life.
Asked by: Baroness Stedman-Scott (Conservative - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government what plans they have, if any, to introduce additional pension protections to recognise periods of unpaid childcare, to mitigate the long-term pension disparities faced by women arising from maternity leave and reduced earnings.
Answered by Baroness Sherlock - Minister of State (Department for Work and Pensions)
The new State Pension, introduced in 2016, addresses historically poorer outcomes for women, low earners and self-employed people. This means, on average, women on the new State Pension are receiving almost £20 more per week than those on the pre-2016 system. That is around 98% of the amount received by men (the average for women under the pre-2016 system is 86%).
There are a wide range of National Insurance credits available to support a diverse range of people to build up entitlement to a State Pension, including credits linked to the provision of care for children (under 12).
Automatic Enrolment has succeeded in transforming workplace pension participation rates, in particular for women. We have seen participation rates amongst eligible women in the private sector now equal with those for men.
However, significant gaps remain, both in terms of pension participation and wealth. That is why we revived the Pension Commission, to consider what is required in the long term to deliver a pensions framework that is stronger, fairer and more sustainable. This will include exploring how to improve retirement outcomes, including for women, and those on the lowest incomes and at the greatest risk of poverty or under-saving.
Asked by: Baroness Stedman-Scott (Conservative - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government what steps they are taking in response to the findings of PwC’s Youth Employment Index regarding the role of long-term sickness in driving youth economic inactivity.
Answered by Baroness Sherlock - Minister of State (Department for Work and Pensions)
Long-term sickness continues to be the most common reason for economic inactivity in the working age population. Good work is generally good for health and wellbeing, so we want everyone to get work and get on in work, whoever they are and wherever they live. Backed by £240 million investment, the Get Britain Working White Paper launched in November 2024 is driving forward approaches to tackling economic inactivity.
Young disabled people and young people with health conditions are a diverse group so access to the right work and health support, in the right place, at the right time, is key. We therefore have a range of specialist initiatives to support individuals to stay in work and get back into work, including those that join up employment and health systems. Existing measures include support from Work Coaches and Disability Employment Advisers in Jobcentres and Access to Work grants, as well as joining up health and employment support around the individual through Employment Advisors in NHS Talking Therapies, Individual Placement and Support in Primary Care and WorkWell.
Additionally, the Youth Guarantee and Pathways to Work will guarantee specialist support for young people with long-term health conditions and disabled young people. We have announced an £820 million funding package for the Youth Guarantee to overhaul support and give a generation of young people a brighter future.
We set out our plan for the “Pathways to Work Guarantee” in our Pathways to Work Green Paper and we are building towards our guaranteed offer of personalised work, health and skills support for disabled people and those with health conditions on out of work benefits. The guarantee is backed by £1 billion a year of new, additional funding by the end of the decade. We anticipate the guarantee, once fully rolled out, will include: a support conversation to identify next steps, one-to-one caseworker support, periodic engagement, and an offer of specialist long-term work health and skills support.
In recognition of employers’ vital role in addressing health-related economic activity, we appointed Sir Charlie Mayfield to lead the independent Keep Britain Working Review. The Report was published on 5 November. In partnership with DBT and DHSC, we are immediately launching Vanguards to test new employer-led approaches to support individuals to stay in work and develop a Healthy Workplace Standard, putting Sir Charlie’s key recommendations into action from day one. Additionally, the JWHD has developed a digital information service for employers, continues to oversee the Disability Confident Scheme, and continues to increase access to Occupational Health.
The NHS 10 Year Health Plan, published in July, stated our intention to break down barriers to opportunity by delivering the holistic support that people need to access and thrive in employment by ensuring a better health service for everyone, regardless of condition or service area. It outlines how the neighbourhood health service will join up support from across the work, health and skills systems to help address the multiple complex challenges that often stop people finding and staying in work.
Additionally, Alan Milburn will author an independent report to tackle the persistently high numbers of young people out of work, education and training. The report will examine why increasing numbers of young people are falling out of work or education before their careers have begun, with a particular focus on the impact of mental health conditions and disability. It will make recommendations for policy response to help young people with health conditions access work, training or education, ensuring they are supported to thrive and are not sidelined. It will complement the Timms Review by focusing specifically on the links between youth mental health, economic inactivity and the benefit system.
Asked by: Baroness Stedman-Scott (Conservative - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government what steps they are taking to improve labour market transitions for graduates and strengthen the capacity of the economy to absorb new labour market entrants.
Answered by Baroness Sherlock - Minister of State (Department for Work and Pensions)
Economic growth is the Government’s first mission: creating good jobs, raising living standards and improving public services. We are committed to ensuring that there is a vibrant and diverse labour market in the UK which offers good jobs for graduates and new labour market entrants. As part of our plan to Get Britain Working, we committed to reforming our public employment service through building a Jobs and Careers Service and as set out to the House of Commons on 8 December 2025, the Work and Pensions Secretary announced the expansion of our Youth Guarantee.
The Post-16 Education and Skills White Paper, published in October 2025, outlined our plan to deliver the skilled workforce our economy needs and provides graduate focused reforms that will ensure graduates have pathways into priority sectors with real labour market demand. The reforms include more flexible opportunities for graduates to retrain or upskill, more provision for blended learning and employer aligned courses and regionally expanded training aligned to priority sectors, delivered through Skills England and Strategic Authorities. Graduates in areas like digital, engineering, defence, and construction will benefit from more tailored pathways and employer partnerships.
Asked by: Baroness Stedman-Scott (Conservative - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government how has the proportion of AI expenditure within the Department for Work and Pension’s overall IT budget changed since 2018; what assessment they have made of the potential savings and efficiency gains that could be achieved through greater use of AI and modern IT systems; and what steps they are taking to build in-house expertise and identify new opportunities for AI deployment across departmental operations.
Answered by Baroness Sherlock - Minister of State (Department for Work and Pensions)
The Department for Work and Pensions (DWP) did not allocate direct funding for AI prior to 2023/2024. Direct investment began in 2023/24, representing around 0.4% of the IT budget. In 2024/25, this increased to approximately 2.5% and 2.2% in 2025/26. Whilst the current year (2025/26) shows a reduction in % terms, the £’s investment represents a similar value, demonstrating the Department’s drive to use AI within its digital transformation strategy.
DWP’s Strategy for 2030 sets the direction for how we will transform delivery of our services over the next few years. AI and modern IT systems will play an important role in that strategy.
We collaborate with stakeholders to identify key areas where AI can solve business challenges and add value, co-designing solutions with these stakeholders.
A secure version of Microsoft Copilot Chat is now available to all DWP colleagues. We are providing this capability to enable colleagues to safely explore how AI can contribute to their roles.
Asked by: Baroness Stedman-Scott (Conservative - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government how many passports and driving licences have been removed from paying parents as a result of them not paying their child maintenance.
Answered by Baroness Sherlock - Minister of State (Department for Work and Pensions)
The Department for Work and Pensions uses sanctions such as sending Paying Parents to prison, disqualifying them from holding, or obtaining a passport or driving licence as a last resort and only used when every other method of recovering unpaid child maintenance has been tried. The Child Maintenance Service (CMS) on behalf of the Department only pursues these sanctions when they believe the Paying Parent can pay but is refusing to do so. In these circumstances enforcement powers will have a deterrent effect on Paying Parents.
From the latest Child Maintenance Service official statistics, table 6.2, in the National tables, provides the outcome information where the CMS applied to courts to sanction Paying Parents for non-compliance. The latest statistics show there were three immediate passport confiscations and seven immediate driving disqualifications in Great Britain between July 2019 and March 2025.
Asked by: Baroness Stedman-Scott (Conservative - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government what estimate they have made of the number of people who have entered the Universal Credit system as a consequence of increased employer labour costs, including higher employer National Insurance contributions, particularly in low-margin sectors.
Answered by Baroness Sherlock - Minister of State (Department for Work and Pensions)
No such assessment has been made.
Data on the Universal Credit caseload, including up-to-date trends information, is available at: https://stat-xplore.dwp.gov.uk
Guidance for users is available at: https://stat-xplore.dwp.gov.uk/webapi/online-help/index.html
Asked by: Baroness Stedman-Scott (Conservative - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government what plans they have to implement welfare strategies specifically for those areas excluded from highly clustered, high-productivity economic sectors.
Answered by Baroness Sherlock - Minister of State (Department for Work and Pensions)
Our Get Britain Working White Paper set out our cross-Government plan to get people into work and on in work.
As part of that, we are planning to offer greater employment support in every part of the country to those who need it to get into work and fulfil their potential.
This Government is also taking action to deliver strong, secure, and sustainable economic growth to boost living standards for working people in every part of the UK. Central to this will be the Industrial Strategy, which will help us seize the most significant opportunities and create the most favourable conditions for growth and investment in key UK sectors – spread throughout the country. Through our 643 Jobcentres and unique high street presence, DWP will help growth driving sectors recruit the people they need to thrive.
Government has held several skills summits with industry, including on construction, clean energy and water, and has already signed a Memorandum of Understanding with DEFRA to improve JCP customer access to a wider pool of vacancies, with others to follow with relevant sectors.