Government announces new support measures to boost employment for young people

The UK Government has announced new funding to back young people to find employment, presenting it as a “New Deal” for young people.  

The Government has grappled with the ongoing challenge of youth unemployment, with one in eight young people classified as NEET (Not in Education, Employment or Training). In the Spring Statement, Chancellor Rachel Reeves highlighted future announcements to support young people classified as NEET, saying “this government will not leave an entire generation of young people behind.” 

Today, Pat McFadden, the Secretary of State for the Department of Work and Pensions, announced £1billion of funding seeking to help young people find work, saying: “We are focusing funding where it’s needed most and giving employers the flexibility and support they’ve asked for.”

Laura Cunliffe-Hall, Head of Policy and Public Affairs at UK Youth welcomed the announcement’s focus on continuing to support young people to find work: “We have called for the age eligibility of support programmes to be extended and for Government to focus on digital skills and incentivise and expand access to paid supported work experience. It is encouraging that Government is listening to the sector and young people.  

We know from our employability programmes that youth workers are often the missing piece of the puzzle in supporting young people furthest from the labour market, helping them develop skills, connect with prospective employers, build their aspirations for work and gain meaningful work experience. Embedding youth workers within wider employment support programmes, like the Youth Guarantee, will help young people not just find work, but find work that is meaningful and sustainable over a longer period of time.”  

Today’s announcement focused on: 

• A new Youth Jobs Grant: Businesses will receive £3000 for every young person aged 18-24 that they employ who has been searching for a job for six months or more. Small and medium firms will be paid £2000 for every new apprentice that they take on.  

• Expansion of the existing Youth Guarantee: The previously announced £820million Youth Guarantee guaranteeing paid work for young people aged 18-21 on Universal Credit who have been looking for work for 18 months, has been extended to include young people up to the age of 24. This will come into place in Autumn 2026. UK Youth had previously called for age eligibility for support programmes for young people, like the Youth Guarantee, to be extended to reflect that many young people require additional assistance into early adulthood in our response to the Milburn Review on Young People and Work, carried out by the Department for Work and Pensions. 

• A new AI and automation practitioner apprenticeship to train workers on how to use AI safely and responsibly. UK Youth had also highlighted the need for employment support programmes to provide access to digital infrastructure and training in transferable digital and AI skills, and this apprenticeship pathway is a welcome step in the right direction to prepare young people as the workforce of the future. 

How youth workers support employment  

At UK Youth we have found an effective route into employment – supported work experience. Youth workers can act as a valuable link between employers and young people and are a vital part of the employment support system.  

UK Youth’s Hatch employability programme provided over 1,200 young people with a paid work experience placement alongside employability training, ongoing youth worker support and ultimately a guaranteed interview for a real job.  Delivered over three years and funded by KFC, the programme reached young people in need of a helping hand – only 18% of participants were in education, employment or training at the start of the programme.  

Three months after completing Hatch, 66% of participants were in employment, education or training.

For interventions such as Government’s latest announcements to be successful in the long-term, it is important to embed youth work within employment support systems. This can support young people furthest from the labour market to not just get into employment, but to stay in a fulfilling work pathway for a longer period.  

UK Youth will be continuing to make youth workers’ and young people’s voices heard in the Investigation into Young People and Work, led by Alan Milburn, helping to inform the Government’s work to improve future employment outcomes for young people.  

UK Youth is currently planning this year’s Summer Jobs Programme, which offers young people, aged 16-20 who are at risk of violence or facing significant barriers to employment, a six-week paid work placement. Find out more about the programme, and how young people, youth organisations and employers can get involved.