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UK Government: New Youth Jobs Grant included in major youth employment drive
Created: 17/03/2026News/Events Category: Employability
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The UK Government has announced a major youth employment drive backed by £1 billion will help create 200,000 jobs for young people, alongside the biggest transformation of apprenticeships in a decade.
It comes as apprenticeships starts amongst young people are down 40 percent in the last decade and almost one million young people are not earning or learning - a rise of 248,000 between 2021-2024.
The “New Deal” for young people 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 UC and looking for work for six months. This is expected to support 60,000 young people over three years
- Expansion of the Jobs Guarantee to a wider age range, from 18-21 to 18-24, to create more than 35,000 extra subsidised jobs. This brings the total to be supported through the scheme to over 90,000 in the next three years
- An Apprenticeship Incentive of £2,000 for each new employee aged 16-24 taken on by an SME. As part of wider reforms, this will drive progress to our target of creating 50,000 more apprenticeships
- Further 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
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