The Department for Work and Pensions (DWP) has confirmed that employers can receive grants of up to £3,000 for hiring benefits claimants. This initiative aims to help people move from unemployment into the workplace.
Youth Guarantee and Investment
Ministers have outlined plans to assist employers in creating new job opportunities and training schemes. DWP Minister Andrew Western stated: "This Government will not leave an entire generation of young people behind. For many years our young people have not had the opportunity and support they deserve. Under the last government, between 2021 and 2024, the number of young people not in education, employment or training increased by 250,000."
He added: "That is why this Government is investing in young people’s futures. On 16 March we announced a further £1 billion investment in young people, taking the total investment to £2.5 billion over the next three years though the Youth Guarantee and additional investment in the Growth and Skills Levy. This investment will support almost one million young people and create up to 500,000 opportunities to earn and learn."
Key Components of the Youth Guarantee
The plan includes the delivery of eight Youth Guarantee Trailblazers in England, expansion of Youth Hubs to more than 360 areas across Great Britain, and the introduction of a new Youth Guarantee Gateway in Jobcentres. The Gateway will provide 16-24-year-olds on Universal Credit a dedicated session and follow-up support to help them move into work, training, or education.
This investment will also create around 300,000 more opportunities to gain workplace experience and training, including up to 150,000 work experience placements and up to 145,000 employer-designed training opportunities, such as Sector-based Work Academy Programmes, which offer participants a guaranteed job interview at the end.
Employer Incentives
The Government is taking action to support employers in recruiting and training young people, helping to unlock up to 200,000 more employment opportunities. This includes:
- A new £3,000 Youth Jobs Grant for employers who hire 18–24-year-olds who have been on Universal Credit for over six months.
- A new £2,000 apprenticeship incentive for small and medium-sized employers hiring 16–24-year-olds.
- The Jobs Guarantee scheme, providing long-term unemployed 18–24-year-olds with a fully funded six-month job.
The Youth Jobs Grant is specifically targeted at young people because of the risk of lifelong scarring impacts of extended unemployment at a young age and to support the Government’s commitment to reducing the number of young people not in education, employment or training. It does not place additional requirements on employers’ wider workforce decisions, which remain governed by existing employment law.
Ministerial and Industry Support
Minister for Employment Dame Diana Johnson said: "Our mission is to get Britain working - and that means embracing the technologies that can help people into meaningful, fulfilling careers. Initiatives like this show how AI can be used as a key tool for businesses – unlocking productivity and helping employers to create and fill the jobs that will drive our economy forward."
Dr Ben Maruthappu, founder and chief executive of Cera, commented: "Today's 18-24s will make up the backbone, not just of our future economy – but also of our future health and care workforce. Any investment we make now in skills, support and pathways into work – both for young people, and for any groups who are out of work – is an investment in critical social infrastructure for generations to come."
