Government Ministers consider construction and hospitality industries as potential sources of employment for young people.

The government plans to offer young benefit claimants new job opportunities in sectors like construction and hospitality to address increasing youth unemployment. A total of 350,000 training and work experience placements will be funded, with 55,000 positions guaranteed in areas identified as having the highest demand starting spring 2026.

The 820 million funding, announced by Chancellor Rachel Reeves in last months Budget, aims to help young people transition from Universal Credit into employment. Work and Pensions Secretary Pat McFadden stated that the initiative is designed to help unemployed youth "build a future for themselves".

Critics from the opposition blamed the Budget for exacerbating youth unemployment. The number of 16-24-year-olds not in employment, education, or trainingcommonly referred to as NEETshas been rising since 2021, with nearly one million young people currently neither working nor studying.

Previously, the government committed to guaranteed placements for 18-21-year-olds who have been out of work or education for over 18 months, with potential loss of benefits for those who decline without good cause.

The new initiative expands opportunities to young people on Universal Credit, covering sectors such as construction, hospitality, and health and social care, according to the Department for Work and Pensions (DWP). These roles will be located in regions including:

• Birmingham and Solihull
• The East Midlands
• Greater Manchester
• Hertfordshire and Essex
• Central and eastern Scotland
• South-west and south-eastern Wales

The government reports that 900,000 young Universal Credit claimants seeking work will receive a "dedicated work support session" followed by four weeks of "intensive support". An employment coach will guide them toward one of six pathways: work, work experience, apprenticeship, broader training, learning, or a workplace training program with a guaranteed interview.

In the first six months, over 1,000 young people are expected to begin employment under the program. McFadden emphasized, "Every young person deserves a fair chance to succeed. With proper support and opportunities, they will seize them," describing the funding as "an investment in the future of young people".

Shadow Work and Pensions Secretary Helen Whately criticized the Budget, stating that tax increases are contributing to higher youth unemployment and that the program merely offsets losses with minimal gains.

Additional measures are anticipated as the government prepares to release its national youth strategy. The Budget also included plans to make apprenticeship training for under-25s at small and medium-sized businesses completely free.

Recent figures show 946,000 young people in the UK are NEET, representing 12.7% of 16-24-year-olds. Long-term sickness or disability is cited by a quarter as a barrier to work or education, with health and disability benefit claims also rising. An independent review into the growing number of young people not working or studying was announced last month.

Author: Zoe Harrison