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The government has launched a £1bn employment drive to create 200,000 jobs and apprenticeships for young people, marking the biggest apprenticeship transformation in a decade.
It comes as apprenticeship starts amongst young people are down 40% in the last decade, while almost one million young people are not earning or learning, with a rise of 248,000 between 2021-2024.
Work and Pensions secretary Pat McFadden has today (16 March) said the new Youth Jobs Grant will mean businesses will receive £3,000 for every young person they hire aged 18-24 who has been on UC and looking for work for six months.
The Jobs Guarantee will also be expanded to a wider age range, from 18-21 to 18-24, to create more than 35,000 extra subsidised jobs. This brings the total to be supported through the scheme to over 90,000 in the next three years.
Meanwhile, foundation apprenticeships, supported with an incentive for employers, will also expand into retail and hospitality from April 2026, building on foundation apprenticeships launched in engineering, manufacturing and digital.
Alongside this, the Growth and Skills Levy will be changed to “reprioritise investment where it is needed most” to ensure apprenticeships “remain fit for purpose and prioritise value for money”.
Prime minister Sir Keir Starmer said: “Backing young people is one of the most important investments we can make in this country’s future. We are determined to tackle the rise in youth unemployment by expanding practical routes into work, boosting apprenticeships, and giving employers the clarity they need.
“These reforms underpin our ambition to create an economy that works for everyone, closing the skills gap and supporting more young people into meaningful employment.”
