Government Unveils £820 Million Job Support Package For 18-24 Year Olds

Hospitality businesses will benefit from substantial government investment aimed at bringing young Universal Credit claimants into the workforce, following confirmation of an £820 million initiative that promises to generate approximately 350,000 workplace placements with comprehensive skills training and career support.

The scheme, launching in spring 2026 across high-priority regions including the West Midlands, Greater Manchester, and parts of Scotland and Wales, forms part of the administration’s Plan for Change strategy and could deliver 55,000 young workers with guaranteed employment opportunities and professional development resources specifically designed to bridge the gap between education and employment in sectors like hospitality.

As part of this training, young people will receive six weeks of training, work experience, and a guaranteed job interview, giving young people their first foot in the door towards meaningful employment, boosting their prospects and supporting a stronger economy as part of our Plan for Change.

More than 1,000 young people are expected to start a job in the first six months alone, with local partners and employers to play a key role in supporting young people as they transition into meaningful employment with fully funded wages and wraparound support for young people.

Alongside this, Youth Hubs – centres where young people can receive vital help to get them back on track – will be expanded to every local area of Great Britain, bringing the total to over 360. This will ensure young people up and down the country can access the lifechanging support Youth Hubs offer, such as CV advice, skills training, mental health support, housing advice, and careers guidance.

There is an expectation that young people will take up the opportunities they are offered, and sanctions to benefits could be applied for those who don’t engage with the offered support without good reason.

Work and Pensions Secretary Pat McFadden, said:
“Every young person deserves a fair chance to succeed. When given the right support and opportunities, they will grasp them.

That’s why we are introducing a range of reforms to help young people take that vital step into the workplace or training and to go on and make something of their lives.

“This funding is a downpayment on young people’s futures and the future of the country, creating real pathways into good jobs and providing work experience, skills training and guaranteed employment.

Michael Kill, CEO, Night Time Industries Association:
“The Government’s announcement of £800 million to tackle youth unemployment risks missing the point entirely if the businesses that create jobs are being priced out of existence. You cannot subsidise people into jobs that no longer exist.

“As one of the biggest employers of young people, we are keen to support efforts to get young people into work. But right now, it feels like giving with one hand and taking away with the other. Across hospitality, nightlife and the wider visitor economy, businesses are facing unprecedented pressures, rising wage costs, higher taxes, increased regulatory burdens and mounting operational expenses. This has already resulted in thousands of job losses, reduced hours and business closures.

“Announcing large funding pots may generate headlines, but it does not address the structural reality: when businesses are struggling to survive, they cannot hire, train or grow. Jobs are created by thriving enterprises, not government schemes.

“If even a portion of this £800 million were redirected into direct business support, reducing the cost of employment, easing operational pressures and restoring commercial viability, the job opportunities for young people would follow naturally.

“Until Government policy supports the survival and growth of the sectors that traditionally employ young people, there will remain a stark contradiction between political promises and economic reality.”