Jobless youngsters to be offered work in construction and hospitality – and will lose benefits if they say no
Young people on benefits will be offered jobs in the construction and hospitality sectors and could lose some of their financial support if they say no under the new government’s plans to reduce unemployment.
Ministers have announced an £820 million package aimed at halting the rise in youth unemployment. The money also includes funding training and work experience in construction, hospitality, health and social care for 350,000 young people through universal credit.
Others will be offered “intensive support” to help them find work, with guaranteed government-backed jobs for up to 55,000 young people from spring 2026.
However, those who do not apply for aid without a justified reason may lose some of their aid.
Youth unemployment is at the highest level since the Covid outbreak due to a weak economy, rising minimum wages, business tax increases and increasing numbers of young people with mental health and disabilities.
Labor has been criticized for fueling a slowdown in the jobs market when Chancellor Rachel Reeves increased employers’ national insurance contributions.
The tax increase particularly affected the hospitality and retail sectors, where many young people often get their first job.
In recent years there has also been an increase in the number of “Neets” young people aged 16-24 who are not in employment, education or training. About 940,000 young people are now considered Neet, an increase of 195,000 in the last two years, driven by rising rates of illness and disability.
The Çözüm Foundation warned that the figure would reach one million for the first time since the financial crisis, when it reached 1.2 million in 2012.
Work and Pensions Minister Pat McFadden said: “Every young person deserves a fair chance to succeed. Given the right support and opportunities, they will seize them.”
Former health secretary Alan Milburn has been asked to conduct a review into the growing number of Neet young people that will shape further reforms to health and wellbeing.
Mr McFadden said the new funding was “a down payment on the future of young people and the country, creating real pathways to good jobs and providing work experience, skills training and guaranteed employment”.
Further plans for young people are expected to be revealed next week as the government prepares to publish its national youth strategy.
