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Youth jobs guarantee scheme begins, with wages paid by taxpayer for six months

The government's youth jobs guarantee scheme has started, with the Work and Pensions Secretary Pat McFadden meeting some of the first young beneficiaries.

  • The scheme provides taxpayer-funded wages for six months for 18- to 21-year-olds.
  • It aims to create 90,000 subsidised placements over the next three years for 18- to 24-year-olds claiming Universal Credit and seeking work for at least 18 months.
  • The scheme is currently being piloted in six areas and is intended to be nationwide by November.

The government's youth jobs guarantee scheme has commenced, with Work and Pensions Secretary Pat McFadden meeting some of its initial beneficiaries. The scheme provides taxpayer-funded wages for six months for 18- to 21-year-olds.

Mr McFadden visited Boots' headquarters in Nottingham, where several young people were taken on under the guarantee. He stated that work must be "part of the answer" to the mental health crisis among young people, noting that paid employment can boost confidence and wellbeing.

The scheme is designed to be available to 18- to 24-year-olds in Great Britain who have been claiming Universal Credit and seeking work for at least 18 months. The government aims to create 90,000 subsidised placements over the next three years.

Currently, the initiative is being piloted in six areas with high unemployment, including central and east Scotland, Birmingham and Solihull, and south-east and south-west Wales. The government intends for the scheme to be nationwide by November.

Mr McFadden also highlighted Sainsbury's offer of 10,000 internships for young people and encouraged other large employers to participate in tackling youth unemployment.

Why this matters: The scheme aims to address the rising number of young people not in education, employment, or training (Neets) and the link between unemployment and mental health.

What this means for you: If you are aged 18-24, claiming Universal Credit, and have been seeking work for at least 18 months, you may become eligible for a subsidised placement under this scheme as it expands nationwide.

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