This is part of a weekly article series, later accompanied by a short video, that I'll be releasing every week, (alongside the weekly “State of the Inbox” posts where you keep up to date with what is happening and vote on the issues you want discussed). To read the post on Votes at 16 press here.
I’m a young adult. I’m ambitious and I want to work, build something and contribute.
But lately, I’ve been asking a question that feels taboo: Why should I work?
Because if you look at how the UK system is set up, the answer is… maybe I shouldn’t.
Right now, you can earn more from sickness benefits than from a full-time job on minimum wage.
And it’s creating a generation of young people who are economically inactive, not because we’re lazy, but because the system makes it rational!
Let’s break it down:
Full-time job on National Living Wage (2025): £22,500 (after tax)
Sickness benefits + housing support + PIP: £25,000–£27,500
Single parent claiming for anxiety + child with ADHD: £36,900
Sources: Centre for Social Justice, OBR, DWP
So if you’re 22, struggling with anxiety, and living in a council flat, the system pays you more to stay home than to work - a situation that many people I know find themselves in.
What’s Going Wrong?
This is what economists call government failure. The state tries to help - but ends up making things worse:
Minimum wage laws sound compassionate, but they price out young, inexperienced workers. Employers cut entry-level jobs to avoid costs. Essentially, firms are unable to hire students and fresh grads because they can't afford to pay them + train them without making losses. Which means that they are less likely to hire young people vs someone with more experience already.
Expanded sickness benefits create a “moral hazard” - where people are rewarded for not working.
Mental health support is vital, but when benefits are tied to self-diagnosis, it encourages over-medicalisation. Even the Education Secretary now says kids are being taught that “feeling down” is a disorder. 20% of children (under 16s) are now classified as having a probable mental health disorder.
Freedom and responsibility go hand in hand. But the UK system treats young people like fragile liabilities - not capable individuals.
The Bigger Picture: Youth Unemployment
14.5% youth unemployment in 2025 - the highest since records began
Over 625,000 young people are unemployed
Nearly 1 million are not in education, employment, or training (NEET)
The cost of youth unemployment to the economy is £31 billion from 2021–2025
Work gives people purpose, structure, and dignity. When the system pays you to opt out, it robs you of all three.
So, What Should We Do?
1. Make Work Pay
If work doesn’t pay more than not working, the system is rigged!
Reduce income tax for low earners so the difference between benefits and wages is actually meaningful.
Cut the taper rate for Universal Credit, so people keep more of what they earn.
Introduce tax breaks for youth employment, encouraging businesses to hire under-30s.
The best welfare is a job. The system should reward productivity… not punish it.
2. Cut Back Benefits for Mild Conditions - Reinvest in Therapy, Training & Apprenticeships
Mental health matters. But not every tough day is a disorder, and not every struggle needs a payout!
Reform benefit eligibility so long-term support is reserved for severe, clinically verified conditions.
Use the savings to fund fast-track therapy, mentorship programmes, and vocational training, increasing labour productivity.
Promote apprenticeships over handouts - giving people actual skills.
3. Trust Young People to Rise, Not Trap Them in Dependency
The government doesn’t create opportunity - people do.
End the narrative that young people are fragile.
Offer more freedom to freelance, start side hustles, or gig work without losing benefits overnight.
Let us take risks without punishment - that’s how economic growth and self-confidence are born.
Young people aren’t liabilities - we’re latent entrepreneurs.
4. Let Markets Work
The state needs to learn that the best thing they can do is leave us alone.
Scrap rigid minimum wage hikes that kill entry-level jobs. Let wages grow naturally through supply and demand.
Cut employer costs: lower National Insurance contributions for youth hires, simplify hiring.
Kill the red tape around internships, freelance contracts, and small business start-ups.
The freer the market, the stronger the incentives. Innovation happens when the state gets out of the way.
A short video breakdown will follow later this week — where I unpack how these incentives are shaping our generation’s future. Subscribe to the State of the Debate to stay in the loop.
Let us know your thoughts (and objections!) down below 👇
Fantastic article!
I really like your second idea (reinvesting in therapy, training and apprenticeships)! i agree with it too, that the government should invest in actually helping people, rather than just temporarily solving problems.