Major UK universities including King's College London, Loughborough University and the University of Stirling are advising graduates to apply for benefits such as universal credit immediately after their courses end, and in some cases even before completion. The guidance has raised concerns that young people are being directed towards a life on benefits rather than being equipped with the skills to navigate an extremely challenging job market. Universities present these benefits as an important "safety net" for the transition from full-time study to employment, even for those with jobs lined up.

This advice comes amid the worst youth employment crisis in decades, with only 8,383 graduate job vacancies available in July—a 45 per cent decline from the previous year and lower than the levels seen during the height of the coronavirus lockdown in May 2020. Youth unemployment among 16-to-24-year-olds has risen to 16.4 per cent, the highest level in more than a decade. In response, the government has launched the Jobs Guarantee scheme, which will offer 18-to-24-year-olds on universal credit who have been out of work for 18 months a direct route into employment, with positions matched to individual skillsets and government-funded paid work of up to 25 hours per week for six months.