This report, commissioned by Youth Futures Foundation and delivered by Learning and Work Institute, sets out the challenges and opportunities in young people's interactions with the benefits system. The research forms part of our wider programme of work informing a Youth Guarantee for England. Around 837,000 young people in England are not in education, employment or training (NEET), up nearly 20% since the pandemic, risking harm to their career prospects and the economic prosperity of the country. Around 250,000 young people who claim Universal Credit (UC) are looking for work but need better support. However, nearly 200,000 are claiming benefits but assessed as too ill to work. These young people have little or no contact with Jobcentre Plus or wider help and should be offered extended support if they want it. There are around 400,000 NEET young people who are not claiming benefits and risk missing out on support altogether. They need dedicated outreach to help them move closer to employment. Where young people live also matters: over 15% of young people in Blackpool and Hartlepool claim UC and are in the claimant categories required to search for work or assessed as too ill to work. Simplifying and improving the benefits system and support available will be central to the success of the Youth Guarantee. [Funding for this report was provided by Youth Futures Foundation.]