Young people will receive in-work benefits under the Universal Credit reform, the minister for welfare reform has said.
Lord Freud said: "Universal Credit will ensure that work pays for young people and that remaining on benefits will no longer be seen as an attractive alternative to getting a job.
"This change will ease the difficult transition from benefits to work and will reinforce our efforts to get people off benefits and into jobs."
Currently single young people under 25 will nto be eligible for in-work support from Working Tax Credit. A single person under 25 working 35 hours a week at the national minimum wage may be entitled to £15 to £20 a week under the new initiative.
The proposals are one of a number of initiatives to be published in draft regulations.
Universal Credit will be rolled out from October 2013 with approximately 12m to 13m tax credit and benefit claims removed and replaced with 8m Universal Credit payments.
Benefits will be merged into one single Universal Credit payment including: Jobseeker's Allowance, Employment and Support Allowance, Income Support, Working Tax Credit, Child Tax Credit, Housing Benefit and Income Support.
The government has introduced a work programme and £1bn youth contract, and has increased its 2012 to 2013 budget for apprenticeships in a bid to support people into work.
