20 March 2026
The Department for Work and Pensions (DWP) has this week announced a major youth employment initiative to help create 200,000 new jobs and apprenticeships for young people across the UK. The drive forms part of what ministers are describing as one of the biggest reforms to apprenticeships in a decade.
The government are introducing a new Youth Jobs Grant, offering businesses £3,000 for every young person aged 18-24 they hire who has been on Universal Credit and seeking work for at least six months. This element of the scheme is expected to support around 60,000 young people over the next three years.
From April, the first phase of the Jobs Guarantee will go live for 18-21-year-olds in Birmingham and Solihull, East Midlands, Greater Manchester, Hertfordshire and Essex, Central and East Scotland, and Southwest and Southeast Wales.
The initiative also includes the significant expansion of the Jobs Guarantee scheme to a wider age range, from 18-21 to 18-24 in the national rollout in Autumn. The scheme offers a guaranteed, fully subsidised 6-month paid job to every eligible 18 to 24 year old who has been on Universal Credit and looking for work for 18 months. The government will cover 100% of employment costs for 25 hours a week at the relevant minimum wage, alongside additional wraparound support to help participants succeed in their job and transition into sustained employment. This expansion of the age range is set to create over 35,000 additional subsidised jobs, bringing the total number of placements expected through the scheme to support around 90,000 in the next three years.
Small and medium-sized employers will benefit from a £2,000 apprenticeship incentive for every new apprentice aged 16-24 they take on. The reforms include the rollout of new foundation apprenticeships in hospitality and retail. According to the government, this support will contribute to the target of creating 50,000 more apprenticeships, ensuring more young people can access training.
The government says this funding will support nearly one million young people, signalling a renewed national commitment to tackling youth unemployment and strengthening the UK’s future workforce.
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