Key Takeaways:
- The government will fund 350,000 training and work experience placements for young people on benefits.
- 55,000 jobs will be guaranteed in areas of high need from spring 2026.
- The funding will come from the £820m announced by Chancellor Rachel Reeves in the Budget.
- The plans aim to tackle rising youth unemployment, with nearly a million young people not in employment, education, or training.
- The government will provide dedicated work support sessions and intensive support for young people on Universal Credit.
Introduction to the Initiative
The government has announced a new initiative to tackle rising youth unemployment by offering job opportunities in industries such as construction and hospitality. The plan aims to provide 350,000 training and work experience placements, as well as guarantee 55,000 jobs in areas of high need from spring 2026. The funding for this initiative will come from the £820m announced by Chancellor Rachel Reeves in the Budget last month. This move is part of a larger effort to get young people off Universal Credit and into work, with the government recognizing the need to support young people in making a successful transition into the workforce.
The Current State of Youth Unemployment
The number of 16-24-year-olds not in employment, education, or training (NEETs) has been trending upwards since 2021, with the latest figures showing nearly a million young people are now not earning or learning. This is a concerning trend, and the government has acknowledged the need to take action to address it. The government had already announced in September that it intended to provide guaranteed work placements for 18-21-year-olds who had been out of work or education for longer than 18 months, with those not taking up the offer without good reason facing losing their benefits. The new initiative builds on this earlier announcement, providing a more comprehensive support system for young people on Universal Credit.
Details of the Initiative
The new training and work experience opportunities for young people on Universal Credit will be in sectors including construction, hospitality, and health and social care. The government-backed jobs will not necessarily be in the same sectors, but will be located in specific regions, including Birmingham and Solihull, the East Midlands, Greater Manchester, Hertfordshire and Essex, Central and eastern Scotland, and South-west and south-eastern Wales. The government expects that 900,000 young people in total who are on Universal Credit and are looking for work will be given a dedicated work support session, followed by four additional weeks of intensive support. An employment coach will then refer them to one of six pathways: work, work experience, apprenticeship, wider training, learning, or a workplace training programme with a guaranteed interview.
Government Expectations and Criticisms
The government expects more than 1,000 young people to start a job in the first six months of the scheme. Work and Pensions Secretary Pat McFadden described the funding as "a downpayment on young people’s future" and emphasized that every young person deserves a fair chance to succeed. However, shadow work and pensions secretary Helen Whately criticized other measures announced in the Budget, saying that the Chancellor’s tax hikes are driving up youth unemployment and snatching a career from a generation of young people. She added that the scheme is nothing more than taking with one hand to give with the other. Despite these criticisms, the government remains committed to supporting young people in their transition into the workforce.
Broader Context and Future Plans
The government’s initiative is part of a broader effort to address the rising number of young people not working or studying. There were 946,000 young people who were NEET in the UK in the three months to September, equivalent to 12.7% of all people aged 16-24. A quarter of these young people cite long-term sickness or disability as a barrier to work or education, while the number claiming health and disability benefits is also on the rise. The government announced last month that it was launching an independent review into the rising number of young people not working or studying. Further plans are expected to be set out in the coming week as the government prepares to publish its national youth strategy. Chancellor Rachel Reeves previously announced that the government would be funding a scheme to make apprenticeship training for under-25s at small and medium businesses "completely free". These efforts demonstrate the government’s commitment to supporting young people and addressing the complex issues surrounding youth unemployment.
