Young people on benefits to be offered construction and hospitality work

Young people on benefits to be offered construction and hospitality work

The government has unveiled a new initiative aimed at addressing the growing challenge of youth unemployment by offering taxpayer-funded job placements for young benefit recipients. These roles will span sectors such as construction, hospitality, and health and social care, with the goal of providing work experience and training opportunities. Backed by an £820 million budget announced during the recent Budget, the scheme will finance 55,000 six-month placements, alongside additional support to help young people enter the workforce.

Work and Pensions Secretary Pat McFadden emphasized that participants on universal credit, aged 18 to 21, who have been job hunting for at least 18 months, will be expected to take up these fully subsidized positions. If individuals turn down the offers without a valid reason, as McFadden explained on BBC’s Sunday with Laura Kuenssberg, they risk losing their benefits. He clarified that acceptable excuses could include situations such as a family emergency preventing attendance. The scheme’s rollout will begin in spring 2026 across six UK regions notably affected by high youth unemployment, including Birmingham and Solihull, Greater Manchester, and central and eastern Scotland.

Alongside these placements, the government aims to create a total of 350,000 training and work experience opportunities as part of a broader strategy. As part of the offer, 900,000 young people on Universal Credit will receive tailored work support sessions, followed by an intensive four-week support program. Employment coaches will then guide them towards one of six pathways, including work, apprenticeships, wider training, or guaranteed interviews through workplace training programs. The government anticipates that more than 1,000 young individuals will secure jobs within the first six months.

The initiative has drawn mixed reactions. The Conservative party criticized it, arguing that Labour lacks a clear plan for economic growth and job creation. Meanwhile, shadow work and pensions secretary Helen Whately condemned other fiscal measures announced alongside the scheme, stating that tax increases are exacerbating youth unemployment and undermining the prospects of a generation. She described the new job offer as “taking with one hand to give with the other.” Additional youth employment proposals are expected as the government prepares to release its national youth strategy. Previous announcements have also included plans to make apprenticeship training for under-25s in small and medium-sized businesses free of charge. Recent statistics show that nearly one million young people aged 16 to 24 are neither employed nor in education or training, with a significant portion facing long-term illness or disability as a barrier to work or study. In response, the government has launched an independent review to better understand and tackle this issue

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