UK employers to receive £3,000 grant for hiring long-term jobless youth
9 reported
Employers in Great Britain will receive a £3,000 grant for every long-term unemployed young person they hire, under a government plan to reduce the welfare bill and joblessness. The scheme, available from Tuesday, aims to help 60,000 people aged 18-24 enter work over the next three years. Firms in England, Scotland, and Wales can access the grant if they hire an eligible young person who has been out of work for six months or more. Labour has faced criticism from opposition leaders and business groups who say its policy decisions, including increased employer national insurance contributions and a rising minimum wage, have worsened the youth jobs crisis. A government-commissioned report by former minister Alan Milburn found that 1 million people aged 16 to 24 in the UK are not in employment, education, or training, a rate higher than all EU countries except Romania. Prime Minister Keir Starmer and Work and Pensions Secretary Pat McFadden will host a roundtable with hospitality businesses supporting the scheme, with Merlin Entertainments becoming the first employer to back it by creating 300 jobs over three years.
What’s reported
Employers in Great Britain will receive £3,000 for each long-term unemployed young person hired.
The scheme targets 60,000 people aged 18-24 over three years, starting Tuesday.
Eligible young people must have been out of work for six months or more.
Labour has faced criticism from opposition leaders and business groups over policies including employer national insurance increases and a rising minimum wage.
A government-commissioned report by Alan Milburn found 1 million people aged 16-24 in the UK are not in employment, education, or training (Neet).
In 2025, only Romania had a higher Neet rate than the UK.
Keir Starmer and Pat McFadden will host a roundtable with hospitality businesses on Monday.
Merlin Entertainments will create 300 jobs for young people over three years as the first backer.
The jobs guarantee scheme pilot funds 100% of employment costs for up to 25 hours a week at minimum wage for eligible 18-24 year olds claiming universal credit for 18 months.
Key figures
Keir Starmer, Prime Minister
Pat McFadden, Work and Pensions Secretary
Alan Milburn, former minister who authored the report
Andy Burnham, newly elected Makerfield MP and likely next prime minister
Paul Nowak, Trades Union Congress general secretary
Sources: The Guardian
