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UK Graduates on Benefits Hit 707,000, With One in Three Citing Ill Health

Ministers have unveiled an urgent plan to move young people into work through paid placements.

Higher-level apprentices such as trainee network engineers typically earn £37,300 a year
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Overview

  • Fresh analysis by the Centre for Social Justice shows 707,000 degree-holders were out of work and on benefits at the end of 2025, a 46% rise since 2019.
  • About 240,000 non-working graduates reported health problems preventing work, and four in five under‑30 graduate claimants cited health reasons.
  • The government says its Jobs Guarantee will provide paid placements with employers including E.ON, JD Sports, Tesco and TUI, backed by £1.5bn for training and apprenticeships.
  • Former health secretary Alan Milburn has been commissioned to lead an independent review into barriers facing younger people in the labour market.
  • Analysts point to a degree-to-work mismatch as higher-level apprentices now out-earn many graduates and under‑19 apprenticeship starts have fallen about 40%, with nearly 950,000 young people classed as NEET.