The Department for Work and Pensions (DWP) has confirmed that Universal Credit will continue to be paid to young people who participate in a new work placement scheme with major high street retailers. The scheme, announced by the Labour Party government, aims to help between 30,000 and 45,000 18- to 24-year-olds who are not in education or work (NEETs) find employment each year.
Retailers including Asda, Greggs, Tesco and Ann Summers are working with the DWP and Andy Burnham to create up to 100,000 jobs under the initiative. The DWP has confirmed that participants will still receive their Universal Credit payments while taking part in the placements.
Retailers partner with DWP to tackle youth unemployment
The scheme targets young people aged 18 to 24 who are not in education or work. High street bosses and the DWP say the initiative will help between 30,000 and 45,000 NEETs to find work every year. The retail sector believes the scheme could pave the way for 100,000 extra jobs by the end of Parliament in 2029.
Mr Burnham said: “Too many young people are trapped in a vicious cycle where they need experience to get a job and need a job to get experience – leaving them stuck while the world of work drifts further out of reach.” He added: “That isn’t right.”
Work experience as a route into employment
Mr Burnham continued: “It’s great news that retailers across the country are stepping up to offer thousands of young people the chance to get valuable work experience and a route into a job. Opportunities like these can make all the difference, helping young people gain the confidence, skills and connections they need to get started in work.”
Helen Dickinson, of the British Retail Consortium (BRC), said: “Retail is coming to the rescue for tens of thousands of young people struggling to take their first steps on the career ladder. Too many are trapped in a no-experience, no-job doom loop. High-quality work experience is essential to fix this problem, and opening shift is a major contribution to delivering it.”
DWP plans to expand scheme beyond retail
DWP boss Pat McFadden said he hoped to expand the scheme beyond the retail sector, encouraging other businesses to make similar commitments. He said: “Together, we can say that this is a cause for the UK, that we are not simply going to sit back and accept the situation where 1 million young people are not engaged in productive economic activity.”
The announcement follows news that over-75s have been rushing to withdraw cash ahead of new rules under Andy Burnham and John Healey. The DWP’s confirmation that Universal Credit will still be paid to scheme participants is intended to remove a potential barrier for young people considering taking up the work placements.
