Councils should control youth unemployment benefits

The Local Government Association (LGA) and the Centre for Social Justice's Hidden Talents II report calls for local authorities to decide benefit rules for under-25s and also for decisions about who gets Educational Maintenance Allowance to be devolved to councils.

The report also calls for the term Neet (not in education, employment or training) to be dropped to avoid stigmatising jobless young people and a greater focus on early interventions such as health visitors and increasing parents involvement in their children's education.

Margaret Eaton, LGA chair, said: "The Education Maintenance Allowance has been a valiant effort to help young people whose families might struggle to support them though education as they get older but it is clear it is not making enough of a difference.

"The billions of pounds being paid out each year in benefits is simply money down the drain if ways aren't found of using that money to help people change their lives for the better."

She added: "These pots of money can and must have more of an impact on the lives of young people across the country. Councils know where the work opportunities are, and they know what barriers prevent teenagers reaching their full potential in their local areas."

Richard Williams, chief executive of training organisation Rathbone, said: "We welcome the LGA's report because it demonstrates that as local authorities prepare to take on responsibility for 16-19 funding, they recognise the complexity of what support young people need. This is a moment of opportunity to get provision right for young people."