DWP chief Pat McFadden admits youth neglected amid new jobs funding
UK (Parliament Politics Magazine) – DWP chief Pat McFadden admits young people ‘haven’t had the attention they deserve’ as government unveils new youth work and training funding package.
As reported by The Guardian, Pat McFadden admitted young people “haven’t had the attention they deserve,” as many face rent pressures, job struggles, and university debt.
What did Pat McFadden say about helping young people with jobs and housing?
During an interview on Sunday, Pat McFadden said,
“Look, I think young people haven’t had the attention that they deserve. I think there is something in that. That’s why I think this youth guarantee package is so important, because these numbers have been up for years and no one did anything about it.”
He stated,
“I also think on the housing front, it’s become more difficult. That’s why we’ve got such an ambitious target to build more houses. A lot of young people are renting; we legislated to improve renters rights.”
Mr McFadden added,
“So I think across the piece, young people in this country need a better deal. I think they need a sense that the government that’s in office believes in them, backs them, and we want to do that, and that’s why we’re bringing forward this package.”
The work and pensions secretary confirmed government plans to offer young people apprenticeships, training, and education. The initiative is expected to reach around one million young people on Universal Credit, as youth unemployment remains high due to the pandemic and rising living costs.
When asked whether Universal Credit benefits could be withdrawn, Mr McFadden replied,
“Yeah, it could be. We see this as both an offer and an obligation.”
He said he was “struck” by DWP data showing that about one million young people are not in education, employment, or training. “That’s when the rise really started,” Mr McFadden added.
The DWP chief said youth unemployment must be a ‘Labour cause,’ noting that rates are higher in deprived areas. He attributed the NEET rise to structural labour market issues and post-COVID effects.
Mr McFadden continued,
“What I want to see … is young people in the habit of getting up in the morning, doing the right thing, going to work. That experience of that obligation but also the sense of pride and purpose that comes with having a job.”
How did Pat McFadden defend the Rachel Reeves decision to scrap the two-child benefit cap?
Pat McFadden supported Chancellor Rachel Reeves’ decision to scrap the two-child benefit limit, which is expected to cost around £3bn per year by 2029-30.
The move to remove the cap, made under pressure from Labour backbenchers, was welcomed by charities and campaigners as a cost-effective way to reduce child poverty.
When questioned about why the government had changed its stance on scrapping the two-child benefit cap, Mr McFadden said,
“The manifesto that we fought the election on said that we would reduce child poverty. There are a number of ways to do that. We set up a taskforce immediately after the election that worked through all this.”
He stated,
“The second thing I was about to say is we did have to identify how you pay for that. And we’ve done that in several ways. We are making savings from cracking down on fraud and error in the benefits system that have been scored by the OBR, and the chancellor announced an extra taxation provision on online gambling, too.”
The Work and Pensions secretary added,
“I do believe that when you make a spending commitment, you’ve got to say ‘how are you going to pay for it?’ So I understand the motivations of people who said we should have done this earlier; they wanted it done. But it’s important if you’re going to run a responsible government to say how things are paid for.”
What did Helen Whately say about Labour’s youth jobs plan?
Shadow Work and Pensions Secretary Helen Whately criticised Labour’s youth jobs and training plan as “wrong,” saying government taxes discourage employers from hiring young people.
She said,
“What we’ve seen today announced by the government is funding the best part of £1bn on work placements and government created jobs for young people. That sounds all very well.”
Ms Whatley added,
“But the fact is … just two weeks ago, we had a budget from the chancellor, which is expected to destroy 200,000 jobs. A year ago, we had a budget from Labour which was destroying 150,000 jobs, and we know that the jobs are being particularly hit by Labour’s policies – like the jobs tax, that national insurance rise – are jobs for young people. For instance, jobs in hospitality.”
The shadow work and pension secretary continued,
“So the problem we have here is a government whose policies are destroying jobs, destroying opportunities for young people, now saying they’re going to spend taxpayers’ money on creating work placements. It’s just simply the wrong answer.”
She claimed a key factor keeping young people out of work is that many are moving onto sickness benefits.
Ms Whately said,
“The number one reason why people, young people, are becoming Neet – not in employment, education or training – is because they’re moving on to sickness benefits. Yet we just saw a few months ago where Labour was attempting to make some reforms to this problem (people going on to sickness benefits). They u-turned, they abandoned their reforms.”
She added,
“They have no plans for the foreseeable future to do anything about this fact that you can have a higher income on benefits than in work.”
How did the Government plan to support almost one million young people?
The British government has announced a new plan to support young people, which includes:
- Providing £820 million to benefit almost one million young people.
- Creating 350,000 new training and workplace opportunities in key sectors.
- Offering dedicated work support and coaching to young people on Universal Credit.
- Launching a guaranteed jobs scheme in Spring 2026 in areas with the highest need.
- Expanding Youth Hubs nationwide to provide careers guidance, skills training, and additional support.
- The Jobs Guarantee will provide paid work for 18- to 21-year-olds on Universal Credit for 18 months.
- Participants will follow tailored pathways, including apprenticeships, training, and guaranteed interviews.
What is the two-child benefit cap?
The “two-child limit” is a policy restricting means-tested benefits. This means families cannot receive the standard additional amount for a third or any subsequent child born on or after April 6, 2017.
Rachel Reeves announced in the Autumn Budget that the cap will be removed from April 2026. This change is expected to increase income for hundreds of thousands of families and lift an estimated 450,000 children out of poverty.