From Tuesday 30 June 2026, employers across the UK will be able to access the new Youth Jobs Grant, a government scheme designed to tackle youth unemployment. The initiative offers a payment of £3,000 to businesses for every eligible young person they employ, provided the individual has been out of work for at least six months. This funding is part of a broader government commitment to help up to 60,000 individuals aged 18 to 24 take their initial steps into the workforce over the next three years.
The introduction of the Youth Jobs Grant coincides with the government's reinforcement of its Youth Guarantee, which will see almost one million young people benefit from more intensive and tailored support within Jobcentres nationwide. This comprehensive approach underscores a significant investment in the next generation, aiming to provide clear pathways into employment or further education.
Ahead of the grant's launch, Prime Minister Keir Starmer and Work and Pensions Secretary Pat McFadden are scheduled to host a roundtable event at Downing Street. The event will bring together key figures from the hospitality sector who are actively supporting the new scheme, highlighting the collaborative effort between government and industry to boost youth employment.
Merlin Entertainments, a major UK attractions company operating sites such as LEGOLAND Windsor and Alton Towers, has already confirmed its backing for the initiative. The company has pledged to create 300 jobs for young people over the next three years, utilising both the Youth Guarantee and the new Youth Jobs Grant. These roles will span various departments, from hospitality and guest experience to technology and marketing, offering valuable skills and experience for lasting careers. Merlin also plans to expand apprenticeship routes through its Engineering Academy, supported by the Growth & Skills Levy.
Prime Minister Keir Starmer emphasised the government's commitment to expanding opportunities, stating that the initiative represents a "new contract with the next generation" to ensure every young person has a clear path to learning or earning. Work and Pensions Secretary Pat McFadden echoed this sentiment, noting that the £3,000 grant will enable employers, both large and small, to invest in young talent who are ready to work but need that crucial first step on the career ladder. He urged other businesses to join the Youth Guarantee, building on Merlin's commitment.