The United Kingdom government has announced plans to expand its youth employment programme, guaranteeing eligible young people aged 18 to 24 a six-month paid job placement after spending 12 months on Universal Credit.
The expansion is aimed at addressing the growing number of young people not in education, employment or training, commonly referred to as NEETs, which exceeded one million earlier this year for the first time in more than a decade.
Under the revised arrangement, eligible beneficiaries will be offered fully funded employment opportunities matched to their skills.
The government will cover up to 25 hours of paid work weekly at the applicable minimum wage.
The Department for Work and Pensions said the programme would be extended nationwide from the end of November, while the reduction in the qualifying period from 18 months to 12 months is expected to take effect in April 2027.
The announcement comes ahead of a major review of youth unemployment by former Labour Health Secretary, Alan Milburn, whose recommendations are expected to be published on Tuesday.
Milburn told the BBC that the government should have a responsibility to ensure young people have access to employment, training or other forms of support.
He suggested establishing a legal obligation similar to the responsibility placed on local councils to provide accommodation or advice to homeless people and support children in care.
He also argued that previous employment initiatives had been temporary and insufficient to address the growing number of young people struggling to secure jobs.
The existing government programme, known as the Jobs Guarantee, does not carry a legal obligation.
Its funding comes from the government’s wider £2.5bn employment support package.
Milburn is also expected to recommend changes to welfare payments for people under 25, including ending their eligibility for the health element of Universal Credit and Personal Independence Payments and replacing them with a youth allowance paid at the standard Universal Credit rate.
However, the anticipated recommendations have generated concerns among some Labour lawmakers, particularly over the possibility of reduced financial support for vulnerable young people.
Greater Manchester Mayor Andy Burnham has described the forthcoming review as a “watershed moment” but has not committed to implementing all its recommendations.
Prime Minister Keir Starmer has also maintained that funding the proposed reforms would not require additional government spending but would involve “spending differently”.
Announcing the expansion of the employment programme, Work and Pensions Secretary Pat McFadden said, “The longer someone is out of work, the harder it is to get back in, and no young person should be left waiting on a scrapheap for an opportunity.
“That is why we are expanding our guaranteed jobs scheme across Great Britain and bringing it forward, so that help arrives when it matters most.
“Employers are crying out for talent and there is a generation of talent ready to be unleashed. We are backing them with the support they need to build a fulfilling future.”
However, the opposition Conservative Party questioned whether the initiative would create sustainable employment opportunities, arguing that subsidised placements would not address the underlying causes of youth unemployment.
Conservative Party leader Kemi Badenoch criticised the government’s approach, saying, “The Government is making it harder for businesses to take people on, then bringing in schemes to deal with the consequences.
“Our rescue mission for young people will create the jobs they need by halving the jobs tax, cutting business rates for 250,000 high street businesses and generating 100,000 apprenticeships a year.
“Alan Milburn is right that the system needs to change. We’ve found £36 billion in welfare savings and will support the reforms that genuinely help people.
“But young people do not need another Government scheme that leaves them waiting. They need businesses in the private sector to have the confidence to create jobs and give them a first chance.”
Similarly, Shadow Work and Pensions Secretary Helen Whately accused the Labour government of addressing the consequences rather than the causes of rising youth unemployment.
“Young people deserve real support to get themselves onto the career ladder, not another government-funded waiting room,” she said.
