Ministers have unveiled an £820 million funding package aimed at tackling rising youth unemployment by moving young benefit claimants into employment.
The initiative will aim to provide skills training and work placements across the construction, hospitality and health and social care sectors for 350,000 young people currently receiving Universal Credit.
From spring 2026, the Government will guarantee positions for up to 55,000 young people through state-backed employment schemes.
Those offered assistance will also receive intensive support to help them secure employment.
The initiative will aim to provide skills training and work placements across the construction, hospitality and health and social care sectors
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However, the package comes with conditions – young people who refuse to take part without a valid reason could see their benefits cut.
The announcement forms part of broader efforts to address the growing number of young people outside work and education.
The funding comes as the number of young people classified as Neets – those aged 16 to 24 who are not in employment, education or training – continues to climb.
Current figures show approximately 940,000 young people fall into this category, representing an increase of 195,000 over the past two years.
The funding comes as the number of young people classified as Neets continues to climb (file photo)
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Rising rates of sickness and disability have been the primary drivers behind this surge.
The Resolution Foundation has cautioned that Neet numbers are set to breach the one million mark for the first time since the aftermath of the 2008 financial crisis, when they reached a peak of 1.2 million in 2012.
Former Health Secretary Alan Milburn has been commissioned to conduct a review examining the growing Neet population, which will inform future health and welfare policy changes.
Work and Pensions Secretary Pat McFadden said: “Every young person deserves a fair chance to succeed.
“When given the right support and opportunities, they will grasp them.”
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Pat McFadden described the move as ‘a downpayment on young people’s futures’
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PAMr McFadden described the investment as “a downpayment on young people’s futures and the future of the country, creating real pathways into good jobs and providing work experience, skills training and guaranteed employment”.
As part of the initiative, Youth Hubs – centres offering guidance and assistance to help young people get back on track – will be rolled out to every local area across Great Britain, expanding the network to more than 360 locations.
Officials anticipate that over 1,000 young people will secure employment within the scheme’s first six months.
However, Shadow Work and Pensions Secretary Helen Whately launched a sharp attack on the Government’s initiative, arguing that fiscal policy was undermining its stated aims.
“The Chancellor’s tax hikes are driving up youth unemployment, snatching a career from a generation of young people; this scheme is nothing more than taking with one hand to give with the other,” she said.
Ms Whately characterised the announcement as an acknowledgement that ministers lack any coherent strategy for economic growth or genuine job creation.
She also questioned whether the programme would deliver measurable outcomes, saying: “Ministers cannot say what the roles are, who the employers will be, or how many will still exist once the funding ends.”
Additional youth-focused measures are anticipated in the coming days as the Government prepares to release its national youth strategy.