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.
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