Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, with reference to his Department’s press release entitled Major employment drive to help unlock 200,000 new jobs and apprenticeships for next generation, published on 16 March 2026, what factors will determine whether employers can receive the maximum £2,000 subsidy to support 16-21 year-olds into work.

This Government will not leave an entire generation of young people behind. For many years our young people have not had the opportunity and support they deserve. Under the last government, between 2021 and 2024, the number of young people not in education, employment or training increased by 250,000.

That is why this Government is investing in young people’s futures. On 16 March we announced a further £1 billion investment in young people, taking the total investment to £2.5 billion over the next three years though the Youth Guarantee and additional investment in the Growth and Skills Levy. This investment will support almost one million young people and create up to 500,000 opportunities to earn and learn.

This includes the delivery of eight Youth Guarantee Trailblazers in England, expansion of Youth Hubs to more than 360 areas across Great Britain and introduction of a new Youth Guarantee Gateway in Jobcentres. The Gateway will provide 16-24-year-olds on Universal Credit a dedicated session and follow-up support to help them move into work, training or education.

This investment will also create around 300,000 more opportunities to gain workplace experience and training, including up to 150,000 work experience placements and up to 145,000 employer designed training opportunities, such as Sector based Work Academy Programmes, which offer participants a guaranteed job interview at the end.

In addition, the Government is taking action to support employers to recruit and train young people, helping to unlock up to 200,000 more employment opportunities. This includes a new £3,000 Youth Jobs Grant for employers who hire 18–24-year-olds who have been on Universal Credit for over six months, a new £2,000 apprenticeship incentive for small and medium sized employers hiring 16–24-year-olds, and the Jobs Guarantee scheme, providing long-term unemployed 18–24-year-olds with a fully funded six-month job.

The Youth Jobs Grant is specifically targeted at young people because of the risk of lifelong scarring impacts of extended unemployment at a young age and to support this Government’s commitment to reducing the number of young people not in education, employment or training. It does not place additional requirements on employers’ wider workforce decisions, which remain governed by existing employment law.

We followed standard process in assessing equalities impacts, including on the basis of age, to inform Ministerial decisions on the policy. There remains a range of wider employment programmes in place to support adults of all ages into work.

The Youth Jobs Grant is also designed to support employers in hiring eligible young people who have been out of work for six months. The scheme will not require employers to demonstrate that roles are additional. Its purpose is to reduce the barriers young people face when entering the labour market by helping employers with the early costs of recruitment and training, rather than placing conditions on wider staffing decisions and how long an employer must retain someone.

It is available to any registered employer across Great Britain who hires an eligible young person. To receive the Grant, the employer must take on a young person aged 18 to 24 who has been on Universal Credit for six months or more. The Grant will be paid in staged instalments after the employment relationship has started, which will encourage sustained employment during the early months without requiring a formal retention period.

We expect several thousand employers across Great Britain to make use of the Youth Jobs Grant over the next three years. The scheme is designed to support up to 60,000 opportunities for young people and we expect take-up will vary by sector and region depending on employers’ hiring needs. The Grant is open to organisations of all sizes.

Further practical details on how employers will claim the Youth Jobs Grant will be set out in guidance ahead of the scheme launching in June 2026.

To support 50,000 more young people into apprenticeships, we are expanding foundation apprenticeships into hospitality and retail, launching a new level 2 administrative assistant apprenticeship for young people from August, and introducing a new incentive of up to £2,000 for SMEs which take on 16–24-year-old apprentices as new employees. The incentive will apply to apprenticeship starts from October 2026, as long as they have joined their employer within the past 3 months i.e. from July 2026.

Investment into Youth Guarantee and additional investment in the Growth and Skills Levy demonstrate the Government’s commitment to backing young people, supporting employers, and working with partners across Great Britain to create clear pathways into employment and education for young people. We will continue to monitor the impact of these measures and will report the outcomes to Parliament as necessary.