Unemployed young people will be offered work – and could lose benefits if they say no

Youth will be offered jobs on benefits Construction And under new government schemes to reduce hospitality and unemployment they could lose some of their financial support if they say no.

Ministers have announced an £820 million package aimed at curbing the rise youth unemploymentThis funding includes funding for training and work experience in construction, hospitality and health and social care For 350,000 young people on Universal Credit.

“Intensive support” will be offered to help others find work, and government-backed guaranteed jobs will be provided for 55,000 young people from spring 2026.

However people who do not engage in help without good reason may lose some of their benefits.

Youth unemployment is at an all-time high As the COVID pandemic is driven by a weak economy, rising minimum wages, tax increases on business, and rising numbers of youth living with mental health and disabilities.

Labor has been criticized by Chancellor Rachel Reeves for promoting a recession in the job market by increasing employers’ National Insurance contributions.

The tax increase has particularly hit the hospitality and retail industries, sectors where many young people often get their first jobs.

The number of 16–24 year olds deprived of employment, education or training has also increased in recent years. About 940,000 young people are now considered NEET, an increase of 195,000 over the past two years mainly due to rising rates of illness and disability.

And the Resolution Foundation has warned that the figure is set to reach one million for the first time since the financial crisis, when it reached 1.2 million in 2012.

Work and Pension Secretary Pat McFadden Said: “Every young person deserves a fair chance to succeed. When they’re given the right support and opportunities, they’ll figure it out.”

Former Health Secretary Alan Milburn has been asked to lead a review of the rising numbers of NEET young people which will shape further improvements in health and well-being.

Mr McFadden said the new funding was “a down payment on the future of young people and the future of the country, which will create real pathways to good jobs and provide work experience, skills training and guaranteed employment”.

Further plans for young people are expected to be revealed in the coming weeks as the Government prepares to publish its National Youth Strategy.