- The funding will create 350,000 new workplace opportunities designed to support young people into employment.
- Hundreds of thousands more young people on Universal Credit to benefit from dedicated support.
- Guaranteed jobs scheme to roll out in areas with some of the highest need from Spring 2026.
Almost one million young people will benefit from learning or employment opportunities as a result of a major £820 million funding package.
Thanks to the funding, 350,000 new training or workplace opportunities in sectors including construction, health and social care and hospitality will be provided to young people on Universal Credit to help them develop on the job skills, employer networks, and CV and interview coaching – breaking down barriers to employment and ensuring every young person has the chance to reach their potential.
In total, 900,000 young people on Universal Credit and looking for work will also benefit from a dedicated work support session, followed by four additional weeks of intensive support.
They will be referred to one of up to six pathways by their work coach: work, work experience, apprenticeship, wider training, learning or a workplace training programme with a guaranteed interview, designed in partnership with employers.
The investment will provide a springboard to a better future for close to a million young people, giving them the chance to gain crucial skills and support to find a job with long term prospects.
As part of this training, young people will receive six weeks of training, work experience, and a guaranteed job interview, giving young people their first foot in the door towards meaningful employment, boosting their prospects and supporting a stronger economy as part of our Plan for Change.
55,000 young people also stand to gain from a government-backed guaranteed job, which will begin roll-out from Spring 2026 in areas with some of the highest need in Great Britain. These regions are:
- Birmingham & Solihull
- East Midlands
- Greater Manchester
- Hertfordshire & Essex
- Central & East Scotland
- Southwest & Southeast Wales
More than 1,000 young people are expected to start a job in the first six months alone, with local partners and employers to play a key role in supporting young people as they transition into meaningful employment with fully funded wages and wraparound support for young people.
Alongside this, Youth Hubs – centres where young people can receive vital help to get them back on track – will be expanded to every local area of Great Britain, bringing the total to over 360. This will ensure young people up and down the country can access the lifechanging support Youth Hubs offer, such as CV advice, skills training, mental health support, housing advice, and careers guidance.
There is an expectation that young people will take up the opportunities they are offered, and sanctions to benefits could be applied for those who don’t engage with the offered support without good reason.
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.”
Recent data shows that almost one million young people are not in education, employment, or training (NEET), a 26% increase from pre-pandemic levels. Today’s announcement represents a major intervention to reverse this trend and ensure no young person is left behind.
It builds on a wide range of measures the Government is bringing forward to support young people, including expanded funding for youth trailblazers, and a major investigation spearheaded by Alan Milburn into the barriers preventing the young from accessing work.
Earlier intervention is being prioritised, with a £34 million investment to make it easier to identify young people who need support before they drop out of the system. This includes a new Risk of NEET indicator tool, giving local areas more accurate insights to target support where it’s needed most.
The Government will also invest in further education attendance monitoring and provide targeted support for young people in state-funded alternative provision schools, helping them secure valuable work experience.
To ensure young people transition effectively from school into post-16 education or training, we are working with schools and piloting automatic enrolment with further education providers for young people without a place.
As announced by the Chancellor, the Government has committed to delivering a Jobs Guarantee for 18 to 21-year-olds who have been searching for work whilst in receipt of Universal Credit for 18 months.
The initiative will provide 25 hours/week of fully subsidised six-month paid work to every eligible 18- to 21-year-old who has been on Universal Credit and looking for work for 18 months. The young people will be paid at the relevant minimum wage and also receive fully funded wrap around support.
The Government is finalising its National Youth Strategy, shaped by insights from over 14,000 young people, that will set out a long-term vision for youth policy across government.
Laura-Jane Rawlings MBE, CEO & Founder, Youth Employment UK: “The Youth Guarantee is a hugely important step forward and reflects many of the recommendations we have championed through our work.
“More than 8,000 young people took part in our 2025 Youth Voice Census, and the message was clear: they value work experience, skills development and local support, but too often cannot access it.
“This package – from the Youth Guarantee Gateway and expanded Youth Hubs to additional work experience, SWAPs and apprenticeships – represents the most focused investment in tackling youth unemployment we have seen in many years.
“We particularly welcome the commitment to early support, personalised pathways and strong local partnerships. We look forward to working closely with the government, Mayors, local areas and employers to ensure delivery reaches every young person, especially those facing the highest barriers. Together, we can make this Guarantee a meaningful reality for all.”
Barry Fletcher, CEO at Youth Futures Foundation said: “Youth Futures Foundation welcomes the Government’s focus and investment in tackling the growing, stubborn challenge of youth unemployment and inactivity.
“Today’s measures present an ambitious, comprehensive package to reform the system and support more young people into earning or learning.
“Crucially, reforms like the Jobs Guarantee are grounded in the evidence of what works, especially for marginalised young people. This will be vital to ensure a better future for young people and drive long-term economic prosperity.”
Naomi Clayton, CEO, Institute for Employment Studies, said: “With one in eight young people out of work and not in education and training, and the lasting scarring effects that can have, we’re pleased to see the government’s reforms to support more young people.
“We welcome the dedicated support being introduced through the Youth Guarantee Gateway to help prevent young people becoming long-term unemployed, alongside broader preventative measures to make it easier to identify young people who need support. We also welcome the wraparound support that will be provided to long-term unemployed young people as part of the Jobs Guarantee.
“Supporting young people to access meaningful work experience, training opportunities and good jobs will help secure a brighter future for a generation, their communities and the economy.”
Richard Rigby, Head of UK Government Affairs at The King’s Trust said: “At The King’s Trust, we know that when you match young people’s potential with opportunity, they can transform their own lives. This Youth Guarantee is a crucial step towards unlocking that potential.
“Increasing training and work experience opportunities, alongside a guaranteed job scheme for the long-term unemployed, will help the young people we support in our centres each day to start overcoming the barriers they face, and take their first steps into work.
“If we get this right, we can transform the futures of young people out of work across the UK, and build a healthier, wealthier society.”
Neil Morrison, HR Director at Severn Trent said: “Giving a young person that first opportunity can be game changing, so we’re fully supportive of government’s Youth Guarantee.
“At Severn Trent we’re tackling youth unemployment head on, and we’re giving young people real chances to grow and creating opportunities that unlock potential and true talent. We look forward to working together on this, and the role business can play in giving the next generation the very best start.”
Susannah Hardyman, CEO of Impetus, said: “We are delighted that the Government has chosen to invest in the futures of young people.
“With hundreds of thousands of young people neither earning nor learning, and young people from disadvantaged backgrounds twice as likely to be NEET as their better off peers, this Youth Guarantee is much-needed to ensure everyone aged 16-24 gets the support they need to succeed, whether that’s a work placement, work experience or training.
“Expanding Youth Hubs across the country is a particularly encouraging move, especially as they are a place where young people can access support even if they are not currently claiming Universal Credit.
“As our Blueprint for a Youth Hub research found, a culture of hospitality enables Youth Hubs to be an easy front door for young people to start accessing the opportunities they need for a fulfilling life.”
Rain Newton-Smith, CBI Chief Executive, said: “There is a moral and economic imperative for government and businesses to work together to support more young people into training and work.
“These announcements will allow more young people to gain the vital experience that only work can provide.”
Dr Emily Andrews, Director of Policy and Research at the Learning and Work Institute, said: “With nearly one million young people neither earning nor learning, we welcome today’s announcements to tackle the current waste of potential and boost our future workforce.
“Building on our long-standing call for a Youth Guarantee, we are pleased to see a more comprehensive offer developing, with a range of new opportunities for young people to access experience and training in the workplace.
“Crucially, the national system-level offer is being balanced by more place-based approaches, including Trailblazers and the continued expansion of youth hubs to reach young people outside the benefits system.
“We will continue to work with partners on the delivery and implementation of this package at a national, regional and local level, to make the most of these opportunities.”
Debbie Cook, EFL’s Director of Community said: “From employment, mentoring and education programmes to sport and wellbeing initiatives, EFL Football Clubs and their charities are deeply embedded in their communities, empowering young people to unlock their potential and thrive.
“Through the Youth Guarantee, we look forward to maximising opportunities for young people via new employment hubs in EFL communities, ensuring they can access guaranteed pathways into work, training, and skills development.”
Patrick Milnes, Head of People and Work Policy, at the British Chambers of Commerce, said: “The number of young people who are not in education, employment or training is at its highest level for a decade.
“BCC research also shows that 75% of businesses are struggling to recruit skilled workers, so it is good to see the government taking action with an ambitious plan to get young people into work.
“Expanding Youth Hubs and investing in the Jobs Guarantee will help young people gain the skills and experience needed to succeed in the workplace. Our network of 51 Chambers of Commerce across the UK stands ready to help government deliver the Youth Guarantee in full.
“Ensuing young people can access fulfilling careers and businesses can find the talent they need are vital to unlocking growth.”
Tracey Collins, Director of Emerging Talent and Social Impact at Kier, said: “At Kier, we are committed to providing opportunities for young people and bring emerging talent into construction through hundreds of work experience and apprenticeship positions every year.
“It’s important that these opportunities are open to everyone, regardless of background or history, as every young person deserves the chance to flourish.
“To support this, we are delivering a number of initiatives to make Kier accessible to underrepresented groups including a pilot project with the Youth Futures Foundation as well as through our Kierriculum schools’ engagement programme.
“We believe that the Youth Guarantee will further strengthen this activity and we are proud to support the government’s work to collectively reduce long-term youth unemployment and help them reach a better future.”
- The targeted support for young people at particular risk of becoming NEET to secure work experience will focus on pupils in state-funded Alternative Provision settings.
- Alternative Provision refers to education provided outside mainstream or special schools for children who cannot attend a regular school—often due to exclusion, health needs, or other circumstances
