The Department for Work and Pensions (DWP) has launched a new programme, the Youth Guarantee Journey, aimed at Universal Credit claimants born between 2002 and 2010. The scheme targets individuals aged 16 to 24 in England, Scotland, and Wales, offering apprenticeships, work experience, skills training, and one-to-one coaching to help them find work.
How the Youth Guarantee Journey works
Claimants will continue to receive Universal Credit payments while participating in the programme. They will work with Jobcentre staff to create a personalised job search plan, starting with an employment and skills assessment shortly after applying for Universal Credit, followed by regular appointments with a work coach.
After 13 weeks, a 'gateway' meeting will determine the next step, which could include moving into work, starting an apprenticeship, undertaking work experience, or pursuing further education or training alongside the Universal Credit claim. Some young people may be referred to one of over 100 Youth Hubs across Great Britain, where specialist advisers provide careers guidance, confidence-building, and interview preparation. For those with significant barriers to employment, specialist youth employability coaches are available for up to six months, with support continuing for six weeks after securing a job.
Rising youth unemployment crisis
The launch comes as a report by the Resolution Foundation reveals that the number of 16 to 24-year-olds not in education, employment, or training (NEET) has exceeded one million for the first time in 13 years. The think tank warns that even short periods of unemployment in youth can have lasting 'scarring effects' on future earnings, career prospects, and overall wellbeing into adulthood. The research also indicates that targeted employment programmes offer better value for taxpayers than broad tax breaks or wage subsidies.
The Resolution Foundation estimates that a wider Jobs Guarantee could create around 17,500 additional jobs per year at a cost of roughly £37,000 per job, while expanding the existing Youth Jobs Grant could add about 2,800 extra jobs annually at a similar cost. In contrast, reinstating employer National Insurance relief for under-25s would generate only about 7,000 extra jobs per year while costing the Exchequer approximately £132,000 per job created, making it poor value.
Calls for policy changes
The report urges ministers to abandon plans to fully align the minimum wage for 18 to 20-year-olds with the National Living Wage, arguing it risks pricing some younger workers out of the jobs market. It also recommends scaling up the Youth Jobs Grant to 80,000 places per year, expanding the Jobs Guarantee to more young Universal Credit claimants, and ring-fencing apprenticeship funding for under-25s to address the rise in youth joblessness.
