UK government to launch £1bn plan to tackle youth unemployment
Work and Pensions Secretary Pat McFadden will unveil a £1bn package on Monday aimed at encouraging employers to hire young people and create 200,000 jobs.
This “new deal” aims to reverse the growing number of “Neets” (young people not in education, employment or training).
The initiative includes a new Youth Jobs Grant, which provides businesses with £3,000 for every 18-24 year old who has been unemployed for six months or more, supporting an estimated 60,000 people.
A new apprenticeship incentive will provide small and medium-sized businesses (SMEs) with £2,000 for every new employee aged 16-24. The current job guarantee, which offers a six-month role to people who apply for Universal Credit and have been unemployed for 18 months, will be extended to those up to the age of 24.
Mr McFadden said: “These measures will deliver life-changing opportunities for young people and significantly reverse the rise we have inherited in those not in education, employment or training.
“We’re focusing funding where it’s needed most and giving employers the flexibility and support they want. These reforms will give young people a vital first step on the career ladder and help business leaders recruit the talent that will grow their companies.”
Prime Minister Sir Keir Starmer confirmed his government’s resolve and said they were “committed to tackling the rise in youth unemployment by expanding practical routes into work, increasing apprenticeships and giving employers the clarity they need”.
He added: “These reforms underpin our ambition to create an economy that works for everyone, close the skills gap and support more young people to achieve meaningful employment.”
The initiative has received support from leading figures including Michelin-starred chef Tom Kerridge.
He commented: “I have trained apprentices in my restaurants and know what a great start it gives them in their careers and these incentives will give our industry a huge boost. I’m delighted Pat McFadden is making this a priority.”
But the Conservative opposition has warned that job opportunities have “disappeared” under the Labor government, blaming the Employment Rights Act and increased national insurance contributions on employers.
Shadow Work and Pensions Secretary Helen Whately criticized the approach, stating: “The best way to tackle youth unemployment is to support businesses to create jobs, not to tax businesses to fund benefits and subsidies.”
“It’s why the Conservatives cut business rates for thousands of high street businesses and why Labor rolled back the Employment Rights Act. It’s the way to create real opportunities for young people and get Britain working again.”
