Major £820m youth employment package to create 350,000 workplace opportunities

The funding will create 350,000 new workplace or training opportunities in sectors such as construction, health and social care and hospitality.
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Almost one million young people are expected to benefit from expanded training, work experience and job support under a £820m government package aimed at addressing rising youth unemployment and the increasing number of young people not in education, employment or training (NEET).

The funding will create 350,000 new workplace or training opportunities in sectors such as construction, health and social care and hospitality.

These placements will offer on-the-job skills development, employer networks and practical help with CVs and interviews.

In total, around 900,000 young people on Universal Credit and looking for work will receive a dedicated work support session followed by four weeks of intensive employment preparation.

Young people will be referred to one of up to six pathways – work, work experience, apprenticeship, wider training, learning or a workplace-training programme with a guaranteed interview – depending on their needs and readiness for employment.

The support is designed to break down barriers to the labour market and improve long-term job prospects.

A further 55,000 young people will be eligible for a Government-backed guaranteed job, due to begin rolling out in Spring 2026 in areas with some of the highest levels of need, including Birmingham & Solihull, the East Midlands, Greater Manchester, Hertfordshire & Essex, Central & East Scotland, and South West and South East Wales.

More than 1,000 participants are expected to start work in the first six months, with local employers and partners involved in delivering fully funded roles and wraparound support.

Youth Hubs, which offer practical guidance such as CV help, skills training and mental health or housing support, will also be expanded to every local area of Great Britain, bringing the total to more than 360. Government data shows close to one million young people are currently NEET – a 26% rise compared with pre-pandemic levels.

Work and Pensions Secretary Pat McFadden said: “Every young person deserves a fair chance to succeed. When given the right support and opportunities, they will grasp them.

“That’s why we are introducing a range of reforms to help young people take that vital step into the workplace or training and to go on and make something of their lives.

“This funding is a downpayment on young people’s futures and the future of the country, creating real pathways into good jobs and providing work experience, skills training and guaranteed employment.”

Education Secretary Bridget Phillipson said: “Too many young people fall out of education unnoticed, crippling their life changes and denting the economy.

“Smarter data and early-warning tools will change that – helping us to spot risks sooner, step in faster, and keep learners on track through our Plan for Change.

“With these ambitious measures, we can break down barriers to opportunity to make sure every young person gets the support they deserve.”

The package also includes £34m to help identify young people at risk of falling out of education or training earlier, including the rollout of a new Risk of NEET indicator tool for local areas.

Additional measures include improved FE attendance monitoring and targeted help for young people in alternative provision, along with pilots for automatic enrolment into further education for school leavers without a confirmed place.

As previously announced, the Government will also introduce a Jobs Guarantee for 18- to 21-year-olds who have been searching for work while receiving Universal Credit for at least 18 months, offering 25 hours of fully subsidised paid work per week for six months.

The initiatives will form part of the forthcoming National Youth Strategy, shaped by contributions from more than 14,000 young people, which will outline a long-term approach to youth policy across government.

Jessica O'Connor

Jessica O'Connor is Deputy Editor of Workplace Journal and The Intermediary

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