The government has introduced a Youth Jobs Grant offering employers £3,000 to hire young people aged 18–24 who have been claiming Universal Credit and out of work for at least six months. The scheme also includes £2,000 incentives for small and medium-sized businesses (SMEs) taking on new apprentices aged 16–24. These measures form part of a wider £2.5 billion employment and skills package aimed at supporting nearly one million young people over the next three years.
The initiative is intended to address rising youth unemployment, with around 957,000 young people currently not in education, employment or training (NEETs), a figure that has reached a 10-year high. As part of the reforms, eligibility for the existing Jobs Guarantee scheme, which provides fully subsidised six-month work placements, is being extended from ages 18–21 to include those up to 24. The Department for Work and Pensions (DWP) has set an ambition to help generate up to 200,000 jobs and apprenticeships through the programme, described by the government as a “new deal” for young people.
However, Ben Harrison of the Work Foundation cautioned that success will depend on the quality of roles created. He stated: "the Government must guarantee that grants are only available for businesses that provide secure work, fair pay and roles that offer progression for the future. Research shows that any job isn’t always better than no job".
This latest measure sits alongside wider reforms aimed at improving youth employment outcomes, including the commitment announced in the Autumn Budget 2025 to fully fund apprenticeship training and assessment costs for under-25s at SMEs. Together, these initiatives reflect a broader policy approach focused on reducing barriers to hiring younger workers and expanding entry-level opportunities across the UK.
