The Youth Guarantee is one of the most ambitious commitments the government is making to the next generation: a promise to ensure every young person has the opportunity to earn or learn.
With nearly a million young people currently not in education, employment or training, the scale of the challenge is clear - and so too is the urgency to act.
Backed by £2.5 billion over the next three years, the initiative aims to support young people by creating up to 500,000 opportunities through jobs, apprenticeships and tailored support. From financial incentives for employers to fully funded roles and skills reforms, the Youth Guarantee is designed not just to fill vacancies, but to give young people a genuine foothold in the labour market, build confidence, and create lasting pathways into work.
The offer includes:
A new Youth Jobs Grant, through which businesses will receive £3,000 for every young person they hire aged 18-24, who has been on universal credit and looking for work for at least six months.
An apprenticeship incentive of £2,000 for each new employee aged 16-24 taken on by small and medium-sized enterprises. As part of wider reforms, this will drive progress to the government’s target of creating 50,000 more apprenticeships.
Reforms to the Growth and Skills Levy to prioritise young apprentices, secure value for money, and give school and college leavers more opportunities than ever to build careers in cutting-edge industries.
A fully funded and government backed six-month job, with wraparound support for every eligible 18-to-21-year-old who has been on universal credit and seeking work for 18 months or more through the Jobs Guarantee. This is expanding to 18-24-year-olds later this year.
Jacqui Smith, the Minister for Skills, has told us everything we need to know about the scheme…
Q: How does the Job Guarantee differ from previous youth employment or back-to-work programmes?
A: What makes the Jobs Guarantee genuinely different is its focus on sustained success. We know that sometimes it isn’t enough to just get people through the door, they need continued and personalised support.
That is why the Jobs Guarantee will put the right support in place to ensure young people can build the confidence, skills and experience they need to move into sustained employment.
This isn't a one-size-fits-all approach. Support is shaped around the individual young person and their employer, and could include job coaching, role-specific training, mentoring, goal setting and interview preparation.
The goal is not simply to move someone off benefits. It is to give young people a genuine foothold in the world of work and the confidence and skills to build a lasting career from it.
Q: What does participation typically look like for an employer working in the Jobs Guarantee scheme, from first contact through to taking on a young person?
A: Getting involved couldn't be simpler, and the support available every step of the way makes this a genuinely exciting opportunity for businesses of all sizes.
Department for Work and Pensions (DWP) has appointed delivery partners who have a strong understanding of the local labour market to deliver the scheme, and they will proactively reach out to employers in the region. A business can also be connected through local employer networks or Jobcentre contacts, and larger employers with 250 or more employees will have a dedicated DWP central point of contact.
Businesses will then be supported to shape meaningful roles that give young people the real skills and experience they need to thrive. Once a young person is in post, businesses will be reimbursed for 100% of wage costs, for up to 25 hours per week, at the national minimum wage. This support lasts for six months, plus up to £250 per participant for onboarding.
At the end of the six months, we hope that employers will retain the talented individuals they've helped develop.
Q: Am I correct in thinking you are offering to pay employers to hire young people on Universal Credit? How will this work? Can every business take part? What costs is it intended to help employers with?
A: Yes, the Youth Jobs Grant offers employers £3,000 for every eligible 18-to-24-year-old they hire who has been claiming universal credit for six months or more.
From June 2026, employers across every sector and every region of Great Britain will be able to take part. Over the next three years, we expect the grant to create up to 60,000 opportunities. That is 60,000 young people gaining real experience, building their confidence, and taking their first steps towards a lasting career.
We are also offering an apprenticeship incentive of £2,000 for each new employee aged 16-24 taken on by an SME.
I'd encourage every eligible employer to get involved; this is a genuine partnership between government and business to invest in the next generation.
Q: Beyond financial support, what practical help does DWP provide employers once a young person is in post?
A: Financial support is just the beginning. Alongside wage subsidies and onboarding costs, employers who take part in the Jobs Guarantee will have a dedicated local partner working alongside them from day one, helping with the practicalities of bringing a young person into the workplace and ensuring they have the coaching and mentoring they need to hit the ground running. Employers won't be navigating this alone, we are committed to making this work for both sides.
Q: How does the Jobs Guarantee scheme support employers to offer quality roles, rather than short‑term or low‑progression jobs?
A: Quality is at the heart of the Jobs Guarantee. We know that every job offers a young person the chance to learn valuable soft skills, such as time management, confidence and workplace experience. The Jobs Guarantee will also ensure each role offered through the scheme is a genuine job, equivalent to a position that would exist without scheme funding.
This gives young people real work experience rather than a stepping stone that leads nowhere. Roles must enable young people to learn, develop and gain new skills that support their progression into sustained employment. We are clear that this is about meaningful work, not short-term fixes.
To ensure those standards are met, DWP-appointed local partners will engage directly with employers in their area to source safe, fair, high-quality local jobs and match participants to roles that are the right fit for them. Every young person is different, and that personalised approach is central to what makes this scheme work.
Q: What are the main benefits for employers who take part in Youth Guarantee?
A: The practical offer is compelling: fully subsidised wages and wraparound support through the Jobs Guarantee, or a £3,000 Youth Jobs Grant. This comes on top of national insurance relief for employers hiring under-21s, and with the lower minimum wage that saves employers up to £6,000 a year compared with someone older on the national living wage. We've made this as straightforward and affordable as possible.
But beyond the finances, young people bring enthusiasm, new ideas, and a connection to younger consumers that businesses increasingly need. Invest in someone's development early and you'll gain some of the most committed, motivated members of your workforce.
Q: What would you say to employers who are hesitant about hiring young or inexperienced candidates?
A: Inexperience doesn't mean lack of ability or drive. What young people bring cannot be trained - raw enthusiasm, a fresh pair of eyes, and determination to prove themselves.
The world of work is changing at remarkable speed. The businesses that will thrive are those that adapt, innovate, and connect with the next generation. Who better to help than young people who understand new technologies, new ways of communicating, and new ways of working?
My message to hesitant employers is simple: give a young person a chance, and they might just be surprised by what they give back.
Q: What more would you like employers to understand about their role in the Youth Guarantee scheme?
A: Employers are absolutely central to making this work. But I want them to know that this isn't a one-way street. In return they're getting a motivated, supported, enthusiastic new member of their team, and the government stands ready to support businesses to make this work.
What I'd love employers to truly understand is that their involvement isn't just an act of goodwill, it's a genuine business opportunity. The young people coming through this scheme want to work, want to contribute, and want to grow.
This is a partnership, and the employers who lean into it wholeheartedly will reap the rewards.
Q: How do you see the Youth Guarantee evolving over the next few years?
A: We're committed to listening; to young people, to employers, and to delivery organisations, and we'll be paying close attention to what's working and where we can do better.
We will continue to deliver for young people and employers as needed. I am confident that the major interventions this government has brought in will kickstart the necessary next phase of support and help the younger generation succeed in the workplace.
Q: How does DWP measure success for the Youth Guarantee - is it about job starts, sustained employment, skills gained, or progression?
A: We will continue to track the number of young people not in education, employment or training because they tell us how the scheme is working at scale and delivering for the economy.
But the thing that will tell me schemes like the Jobs Guarantee have truly succeeded is whether the young people who come through it are genuinely better off. I don't mean just in employment, but in confidence, in capability, and in their belief in what they can achieve.
Ultimately, if a young person comes through this scheme and leaves with more skills, more confidence, and a path into long lasting work - that is success. And we are determined to deliver that opportunity for the hundreds of thousands of young people we're hoping to reach. The broader economic and social benefits will follow; I have absolutely no doubt about that.
Interested in getting involved?
There are a range of ways to get involved, from recruiting young people into jobs and apprenticeships, to offering work experience placements, training places through our sector-based work academy programmes, or even partnering with DWP to set up a youth hub in your area.
To take that first step, simply visit business.gov.uk/recruit and complete the sign-up form.
