Committee publication · Correspondence · 18 March 2026
Correspondence from the Secretary of State, providing an update on the Youth Guarantee
Summary
Secretary of State Pat McFadden updates the Work and Pensions Committee on the Youth Guarantee, a £2.5 billion three-year investment programme announced to address rising youth unemployment. The scheme expands Youth Hubs to 360+ areas, introduces a Youth Guarantee Gateway in Jobcentres, and creates up to 500,000 job and apprenticeship opportunities through employer hiring incentives, apprenticeship grants, and expanded Jobs Guarantee coverage to age 24.
Key findings
- Youth Guarantee provides £2.5 billion over three years, following initial £1.5 billion announcement in December 2025
- Between 2021 and 2024, the number of young people not in education, employment or training increased by 250,000 under the previous government
- Youth Jobs Grant offers employers £3,000 per young person aged 18-24 on Universal Credit for 6+ months
- New apprenticeship incentive of £2,000 for SMEs in England hiring apprentices under 25, targeting 50,000 new young apprentices
- Jobs Guarantee expanded from 18-21 to 18-24 year-olds, creating 90,000+ subsidised jobs, with national rollout later in 2026
Tone
ProceduralTopics
youth-employmentapprenticeshipswelfare-supportlabour-marketskills-training
Key actors
Pat McFadden, Debbie Abrahams, Work and Pensions Committee, Department for Work and Pensions
Notable line
“Young people need clear routes into opportunity, and employers need the confidence and support to recruit and train them.”
Key Quotes
“Under the last government, between 2021 and 2024, the number of young people not in education, employment or training increased by 250,000.”
“The measures I have announced today are designed to respond to that need.”
“These changes take the total additional investment into the Youth Guarantee and the Growth and Skills Levy to £2.5 billion over the next three years, supporting almost one million young people, and creating up to 500,000 opportunities to earn and learn.”
Source · parliament.uk record ↗