DWP could scrap Universal Credit and PIP for people born in these years

The Department for Work and Pensions could scrap Universal Credit and Personal Independence Payment (PIP) for people born in these years in a major shake up. The Labour Party government is exploring the option of a subsided jobs programme to help get young people into work.

Stephen Evans, chief executive of the Learning and Work Institute, said a subsidised jobs programme is a good "backstop solution" but there's a "whole bunch of things that could be done before then". He is calling for metro mayors to be involved in the delivery of the "Youth Guarantee" pledged in Labour's manifesto.

This promises access to training, an apprenticeship, or support to find work for all young people aged 18-21, but it is not yet clear how it will work in practice. It would impact people born between 2003 and 2026. The Government is soon to release its 'Get Britain Working' White Paper, which is expected to repeat the Government's ambition to reach an 80 per cent employment rate.

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A recent impact assessment of Kickstart found the programme was most effective at helping people with no GCSEs stay in the workforce after it ended, alongside those with special education needs and people eligible for free school meals. "The results show that Kickstart tended to have a higher impact for more disadvantaged groups (who have poorer outcomes in the absence of Kickstart)," the document said.

"This finding could have implications for future targeting of policies like Kickstart." It is understood a jobs subsidy is just one idea being mooted to get more young people working, with no final decision made. A spokesperson for the Department of Work and Pensions said: "We do not comment on speculation."

Chancellor of the Exchequer, Rachel Reeves said: "Due to years of economic neglect, the benefits bill is ballooning. We will build a Britain where people who can work, will work, turning the page on the recent rise in economic inactivity and decline and towards a future where people have good jobs and our benefits bill is under control.