£3,000 Youth Jobs Grant for businesses employing young people

The government is to give employers a £3,000 grant for taking on 18-24 year olds in a bid to tackle rising youth unemployment. 

The new Youth Jobs Grant, announced by Work and Pensions Secretary Pat McFadden, will pay business to hire young people aged 18–24 who have been on Universal Credit and looking for work for six months. This is expected to support 60,000 young people over three years.

It has also announced an expansion the Jobs Guarantee scheme to a wider age range, from 18–21 to 18–24, creating more than 35,000 extra subsidised jobs. This brings the total number of roles supported through the scheme to more than 90,000 over the next three years.

The government hopes the move will counter the rising number of young people neither earning nor learning, following a 37% increase between 2021 and 2024.

In addition, it has announced new foundation apprenticeships in hospitality and retail, with up to £2,000 for employers to support 16–21-year-olds into work. The announcement comes as apprenticeship starts among young people have fallen by 40% over the past decade.

How businesses quality for the Youth Jobs Grant is still to be announced, but in the meantime, Work and Pensions Secretary Pat McFadden said: “These measures will give life-changing opportunities to young people and significantly reverse the increase we inherited in those not in education, employment or training.

“We are focusing funding where it’s needed most and giving employers the flexibility and support they’ve asked for.

“These reforms will give young people a vital first step on the career ladder and help business leaders recruit the talent that will grow their companies.”

The reforms are backed by Michelin Star celebrity chef Tom Kerridge, who has provided dozens of apprenticeships at his pubs. He said: “I welcome this announcement which will provide amazing opportunities to young people looking to get into this industry and others, to learn a trade and earn along the way.

“I’ve trained apprentices in my restaurants, and I know what a great start it gives them in their careers, and these incentives will give our industry a great boost. I’m pleased Pat McFadden has made this a priority.”

In a statement, UKHospitality added: “While we will be looking to see confirmation of how some of these changes will be put into practice, together, they provide employers with supported routes to bring people into work while helping businesses manage rising employment costs.”