The package is backed by £1 billion in additional funding and aims to help create 200,000 jobs and apprenticeships for young people, as part of wider efforts to reduce the number of 16–24-year-olds who are not in education, employment or training (NEET).
Key measures announced include:
- Youth Jobs Grant - Businesses will receive £3,000 for each young person aged 18-24 they hire who has been on Universal Credit and seeking work for six months.
- Expansion of the Jobs Guarantee -The scheme will expand from 18-21 to 18-24 year olds, creating more than 35,000 additional subsidised jobs and supporting over 90,000 placements in total.
- From autumn 2026, eligible participants who have been on Universal Credit and looking for work for 18 months will be offered six-month roles of 25 hours per week, paid at the minimum wage with wraparound support.
- Apprenticeship incentive for SMEs - Smaller businesses will receive £2,000 for each new apprentice aged 16-24, contributing to a target of 50,000 additional apprenticeships.
- Foundation apprenticeships expansion - Entry-level apprenticeships will expand into hospitality and retail from April 2026, building on existing schemes in engineering, manufacturing and digital.
The announcement also highlights the government is introducing seven new “apprenticeship units” designed to allow more flexible training aligned with Industrial Strategy priorities, including AI leadership, EV charging installation and maintenance, solar PV installation, mechanical and electrical assembly, modular construction and welding.
