Home / Business and Economy / UK Tackles Youth Job Crisis: £1B New Deal Launched
UK Tackles Youth Job Crisis: £1B New Deal Launched
16 Mar
Summary
- Government offers £3,000 to employers hiring long-term unemployed youth.
- A new apprenticeship incentive pays businesses £2,000 per young hire.
- Over 940,000 young people are currently not in education, employment, or training.
The UK government is introducing a significant "new deal" to address a worrying increase in youth unemployment. Work and Pensions Secretary Pat McFadden announced a £1 billion funding package designed to generate 200,000 new job opportunities for individuals aged 16 to 24.
A key component is the Youth Jobs Grant, offering employers £3,000 for each new hire aged 18-24 who has been seeking work for at least six months. This scheme is expected to support approximately 60,000 young people. Furthermore, a new apprenticeship incentive will provide £2,000 to small and medium-sized businesses for every new employee in the 16-24 age bracket.
The existing jobs guarantee, previously for those up to 21, will be extended to include young people up to 24. This program ensures a six-month job for Universal Credit recipients who have been unemployed for 18 months. These measures aim to provide life-changing opportunities and reverse the trend of increasing numbers not in education, employment, or training (NEET).
The guaranteed-job scheme is slated for rollout from Spring 2026 in high-need areas including Birmingham, East Midlands, Greater Manchester, and parts of Scotland and Wales. The rise in NEET figures, now around 946,000, is partly attributed to factors like sickness, disability, and the ongoing impact of the Covid-19 pandemic, with mental health concerns significantly increasing among young people.
