Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what steps he is taking to ensure employers are supported to provide entry-level roles suitable for young people under the Youth Guarantee.

The government is taking clear steps to ensure employers are supported to provide entry-level roles for young people.

At Budget the government announced that £820 million has been committed to the Youth Guarantee over the next three years to support all young people aged 16 to 24 to earn or learn. This includes the previously announced Jobs Guarantee, which is guaranteeing six-months of paid work for every eligible 18-21 year old who has been on Universal Credit and looking for work for 18 months. Under the Jobs Guarantee we are committing to ensuring that businesses can take on these young people by funding 100% of the wages for the six months (up to 25hrs/week at the relevant minimum wage), as well as the additional employment costs and a budget for wrap around support. We recognise that the Jobs Guarantee can only succeed if businesses are part of it. That is why we will work closely with employers to develop a programme which works for businesses and young people.

More broadly this government is supporting employers to offer apprenticeships to young people. In August we introduced new foundation apprenticeships for young people in targeted sectors which are underpinned by an employer incentive payment of up to £2,000 to contribute to the extra costs of supporting someone at the beginning of their career. In addition, as my right hon. Friend the Chancellor announced at the Budget, this government will now fully fund SME apprenticeships for eligible people aged 16-24, to boost small business starts and prioritise funding to young people, starting from the next academic year.

Employers also continue to benefit from existing employer National Insurance (NICs) reliefs for under-21s and under-25 apprentices. This means employers pay no employer NICs for apprentices under 25 or employees under 21 on earnings up to £50,270. These reliefs were worth over £1.3bn to employers in 2024/25.