The government has announced a major new initiative aimed at getting nearly a million young people into work, warning that those who refuse to engage could lose their right to Universal Credit benefits.
An £820m Response to Rising Youth Unemployment
The new £820m support package comes as official figures reveal a worrying rise in the number of young people not in employment, education or training (NEET). According to the Office for National Statistics, around 940,000 individuals aged 16 to 24 were considered NEET as of September this year. This marks an increase of 195,000 over the last two years, a trend largely attributed to rising sickness and disability rates.
Work and Pensions Secretary Pat McFadden stated that "doing nothing should not be an option" for young claimants. He emphasised that while the goal is to instil a sense of pride and purpose through work, those who unreasonably refuse the offered support will be subject to the existing benefit sanction regime.
What the New Scheme Involves
The plan targets approximately 900,000 people currently on Universal Credit. They will first be offered a dedicated work support session, followed by four weeks of intensive, personalised assistance to find a job or training place.
Participants will be guided towards one of six designated pathways:
- Direct employment
- Work experience placements
- Apprenticeships
- Wider training programmes
- Formal learning
- Workplace training programmes with a guaranteed interview
The funding will also create 350,000 new opportunities in sectors like construction, hospitality, and healthcare. From spring 2026, the government will back guaranteed jobs for up to 55,000 young people in areas of highest need.
Political Reactions and Additional Support
The announcement has drawn criticism from the opposition. Conservative shadow work and pensions secretary Helen Whately labelled it a "classic Labour approach" and an admission that the government has no plan for genuine economic growth and job creation. She argued that recent government policy is expected to destroy 200,000 jobs, making state-funded placements an inadequate solution.
However, Ms Whately agreed with the principle of sanctioning those who are unmotivated to work, noting that the main driver for rising economic inactivity is young people moving onto sickness benefits.
Beyond the core work pathways, the funding will expand youth hubs offering CV advice, training search help, and housing and mental health support. A further £34m will fund a new "Risk of NEET indicator tool" to identify vulnerable young people before they leave education. The government also plans to bolster attendance monitoring in further education and pilot automatic enrolment for those without a post-16 place.
