The Government expects these changes to have a positive effect on youth unemployment for two reasons. First, taking a contribution from those aged 21 to 24 who are on benefit but on whom there is an expectation of work, increases the incentive to find a job; not least because the householder now has a direct interest in the non-dependant's employment position.
Second, unlike the current system, the contribution does not increase when the non- dependant moves into work or where their earnings rise. This removes a significant disincentive and helps to ensure that work pays.
Any effect on the overall level of youth unemployment will be contingent on the behavioural response to these improved incentives. It is not possible to pre-determine this response.