Funding for businesses who give youngsters a chance as Government ramps up youth jobs drive
Businesses who take on jobless youngsters will be offered thousands of pounds in the latest boost to youth employment support.
- From tomorrow, employers can claim £3,000 if they take on an eligible young person who has been out of work for six months.
- Attractions giant Merlin Entertainments – which is also participating in the Government’s Great British Summer Savings scheme – is one of the first major backers of the grant and will offer 300 jobs for young people as part of the Youth Guarantee.
- This comes as almost one million young people will benefit from more intensive, tailored support in jobcentres.
From tomorrow (Tuesday 30 June 2026) businesses can access the new Youth Jobs Grant, which will pay £3,000 for every eligible young person they hire – helping thousands more young people take their first step on the career ladder. It is a major investment in the next generation, helping up to 60,000 people aged 18 to 24 take their first steps into work over the next three years.
The grant is being introduced as the government reinforces its commitment to tackling youth unemployment by rolling out intensive support in jobcentres for almost a million young people across the country.
Ahead of the launch, the Prime Minister and Work and Pensions Secretary Pat McFadden will today host a roundtable in Downing Street, with hospitality businesses supporting the scheme.
To apply for the Youth Jobs Grant, employers simply complete a straightforward online application here and will receive funding in two instalments once employment and earnings have been verified by DWP.
UK-based attractions powerhouse Merlin Entertainments – which operates over 20 UK destinations, including LEGOLAND Windsor, Chessington World of Adventures, Alton Towers and London’s SEA LIFE Aquarium – has confirmed its support for the scheme and has become the latest major employer to throw its weight behind the Youth Guarantee by committing to create 300 jobs for young people over the next three years.
From hospitality and guest experience to technology and marketing, the opportunities are supported by both the Jobs Guarantee and the Youth Jobs Grant and will help young people gain the skills and experience they need to take first steps into lasting careers. Merlin will also use the Growth & Skills Levy to open up more apprenticeship routes through its Engineering Academy, giving the next generation of technicians the training they need to operate and maintain its world-class rides and experiences.
Many of the 300 roles at Merlin will be through the Jobs Guarantee, which has launched in six areas – offering a fully-subsidised job for six months for young people who’ve been out of work for at least 18 months and will receive wraparound support.
Prime Minister Keir Starmer said:
We often say in this country that every child or young person should go as far as their talents will take them. But too often they are held back by a status quo that doesn’t work for them.
We are turning the page on that, putting in place the building blocks of real reform to expand opportunity for young people and helping them into work.
This is the foundation for a new contract with the next generation, so every young person has a clear path into learning or earning, and the chance to build a secure and successful future.
Work and Pensions Secretary Pat McFadden said:
Young people want the chance to work, earn, learn and build a better future.
That’s why the Government is backing employers large and small with a £3,000 grant to take a chance on young people who are ready to work and need that first step on the ladder, and subsidised work for those who face more challenges.
Working with employers, we can turn young people’s lives around and that’s why I’m delighted to see Merlin’s commitment to create 300 roles, and I urge others to join our Youth Guarantee.
Merlin CEO Fiona Eastwood said:
We’ve long championed opportunities for young people across our UK attractions, with many starting their careers with Merlin every year – so we know the difference that early opportunity can make.
Across our sites, young people help bring joy to life for our guests and each other, creating spaces where teamwork, imagination and play thrive. For many, that first role with us is only the beginning of a much longer journey, with colleagues going on to build varied and rewarding careers within Merlin.
That’s why we’re proud to back the Government’s Youth Jobs Grant and wider Youth Guarantee scheme. We’re ready to harness our scale to open up 300 new opportunities over the next three years – starting at our four resort theme parks.
This is a practical, positive step that helps businesses like Merlin invest in young people with confidence while giving them the skills, experience and support to grow and progress. We’re excited to play our part in helping more young people not only take that crucial first step, but build lasting careers for the future.
Merlin’s commitment reflects a broader partnership with the Government to invest in the UK visitor economy, most recently through the Great British Summer Savings package, which includes a temporary VAT reduction for visitor attractions.
Launched last month, the Great British Summer Savings scheme sees VAT slashed on eligible activities, as the government steps in to help families enjoy activities together for less during the cost-of-living squeeze while supporting the businesses that depend on summer footfall.
UK Hospitality has convened businesses to discuss ways they can engage with the Youth Guarantee, including attending Youth Guarantee Job Fairs, taking on a young apprentice or becoming a delivery partner.
Allen Simpson, Chief Executive of UKHospitality, said:
Hospitality is a sector that offers opportunities for anyone, particularly when it comes to helping people back into work.
The Youth Jobs Grant is a positive initiative to reduce the cost of employment, create more opportunities and support hospitality businesses.
I’ve been pleased to work with the Government on this and bring together businesses today to discuss how the sector can engage with the Youth Guarantee. The Youth Jobs Grant and the Jobs Guarantee are the key measures in the Government’s £2.5 billion drive to back young people into jobs, skills and opportunity. The Jobs Guarantee, which provides fully subsidised jobs for six months, with the government covering 100% of employment costs, to eligible young people will support more than 1,000 young people across six areas as part of a pilot.
Young people with health conditions and disabilities can join the scheme, and all participants receive pre-employment support and training, both for the specific role and in soft skills such as confident speaking and time management.
From today (Monday 29 June 2026) across Great Britain, jobcentres will begin delivering expanded support to provide young people with a structured path into sustained employment from their first visit, through access to jobs, apprenticeships, work experience, vocational training and further education opportunities.
As part of this support, over the next three years, nearly one million young people who are not earning or learning by week 13 of their Universal Credit claim will get an in-depth meeting from a dedicated work coach.
Together, government, employers and communities are coming together to unlock a generation of talent, strengthen the economy and help build a more prosperous future for Britain’s next generation of workers.
Additional information
Expanded jobcentre support
- Eligibility: Young people aged 16 to 24 who are making a new Universal Credit claim and placed in the Intensive Work Search (IWS), Work Focused Interview (WFI), or Work Preparation regimes. Participation in the support is mandatory for those in the IWS regime but is also available voluntarily for individuals in WFI or Work Preparation regimes
- The expanded support was initially launched in April across 81 sites across Great Britain. From Monday 29th June, it will be available at every Jobcentre.
- What is new about this support? We are giving young people more time with work coaches and are bringing more local work and training opportunities into jobcentres by actively working with employers and training providers. We will be working with each eligible young person to identify which opportunity is right from them. Alongside opportunity comes responsibility on the young person to take up those opportunities. Specific changes to the jobcentre support includes:
- A reframed Employment and Skills Review at Week 2 with a stronger focus on skills
- Weekly appointments with an increased focus on personal support to address barriers to work
- A dedicated Youth Guarantee Gateway meeting at week 13, followed by 4 additional weeks of intensive help to ensure young people take up work, training or learning opportunities. During this period, they will receive tailored guidance and be offered up to six options (which could be: work, work experience, Sector-based Work Academy Programme (SWAP), apprenticeship, training or learning) to help them progress into employment. This action will form part of their agreed plan, setting out how they will meet their legal requirement to prepare for and move into work.
Youth Jobs Grant:
- The Youth Jobs Grant is worth £3,000 for every young person a business hires aged 18 to 24 who has been on UC and looking for work for six months. The first payment of £1,800 is made after six weeks, followed by a second payment of £1,200 after 18 weeks, provided grant conditions are met
- To apply for the Youth Jobs Grant, employers simply complete a straightforward online application, where employers will be asked to accept a short set of terms and conditions as part of the application. An eligible young person will be identified by the job centre, and if hired, the employer will receive funding in two instalments once employment and earnings have been verified by DWP. Verification will take place within 10 working days.
Jobs Guarantee:
- The Jobs Guarantee is a central part of the Youth Guarantee, supporting young people to take the crucial first step into sustained employment where earlier support and opportunities may have not worked.
- Under the scheme eligible young people aged 18 to 24 who have been claiming Universal Credit and looking for work for 18 months will be guaranteed a 6 month fully funded job. The Government will fund 100% of employment costs for up to 25 hours a week at the relevant minimum wage, alongside tailored employability support to help participants succeed in their role and progress into sustained employment.
- Our first phase of the Jobs Guarantee launched in April 2026 across six areas; Birmingham and Solihull, East Midlands, Greater Manchester, Hertfordshire and Essex, Central and East Scotland, Southwest and Southeast Wales allowing us to test the model.
Tracey Collins, Sustainability Director at Kier, said:
We’re pleased to see the Youth Jobs Grant providing further support to employers as we all work together to reduce the number of young people not earning or learning.
At Kier we strongly believe that every young person should be given the support they need to remove barriers to employment and, through activity such as our Kierriculum schools’ engagement programme, we deliver a number of initiatives designed to get the next generation into work and set them up to succeed.
We will continue to support the Youth Jobs Grant, the Youth Guarantee and other measures which help us improve our programme of support for young people, giving them the chance to find meaningful and sustainable work at Kier and the wider sector.
A spokesperson for Mitchells & Butlers, said:
We are committed to supporting young people into employment and are proud to be working with the DWP on its Youth Guarantee initiatives. Having already committed to 12 placements through Phase 1 of the Job Guarantee programme, we look forward to exploring the Youth Job Grant when it launches”.
Tina McKenzie MBE, Policy Chair at the Federation of Small Businesses (FSB), said:
The Youth Jobs Grant will help open doors for more young people, while helping small firms to create jobs and build the talent pipeline they need to grow.
With almost half of small employers telling us that financial incentives would encourage them to hire an unemployed person, this initiative should go a long way in tackling youth inactivity and reducing the rising number of young people not in education, employment, or training.
We’re pleased the Government has recognised the vital role small businesses play and is giving them the opportunity to do what they do best- take on new talent and give young people a head start.
Matthew Percival, CBI Future of Work Director, said:
Creating jobs for young people is a priority for business and government. Meaningful incentives to hire young people is an important part of the puzzle when it comes to reducing youth unemployment and the government deserves credit for taking these steps.
Patrick Milnes, Head of Policy for People and Work at the British Chambers of Commerce said:
Tackling the youth employment crisis is a priority for UK businesses, as firms seek to develop future talent pipelines and support growth.
The youth jobs grant is an important first step in helping employers bring more young people into work.
Laura-Jane Rawlings MBE DL, CEO of Youth Employment UK, said:
Young people want the chance to build their future, but too many feel locked out of opportunity. When employers step forward, it matters. It helps young people see where they might fit, what could be possible and that there is a place for them in the labour market.
The Youth Jobs Grant and Youth Guarantee Gateway are important steps in helping employers open more doors and giving young people a clearer way into work, training or learning. Financial support for employers matters, but so does the quality of the opportunity, the support around the young person, and the commitment to helping them progress.
Through our work with young people and employers, we know that lasting impact comes when opportunity is visible, accessible and supported. We look forward to working with government, employers and local partners to make sure every young person can access the right opportunity and support, wherever they live.
Julia Paterson, Talent Acquisition Partner at Tetra Tech said:
We are really looking forward to seeing how the Youth Jobs Grant initiative will work in practice.
We believe it has strong potential to support candidates in developing the skills and confidence needed to succeed in our roles, and we’re excited to seeing how we can be part of that journey.
Dr Ben Maruthappu, Founder & CEO of Cera, said:
Today’s 18-to-24s will make up the backbone, not just of our future economy – but also of our future health and care workforce.
Any investment we make now in skills, support and pathways into work for young people is an investment in critical social infrastructure for generations to come.
That’s why Cera is pledging its support as a key partner in the Government’s Youth Guarantee Scheme, as part of our new Better Start Scheme for 18-to-24s – creating more than 1,000 jobs in care for young people over the next 12 months.
Launched in partnership with The Department for Work & Pensions, our scheme will open up meaningful, fulfilling new care career pathways for young people including NEETs, equipping them with the practical and emotional support they need to thrive, as well as career-boosting technical & AI skills for the future.
In doing so, we are rebuilding lives, reinforcing our care workforce, and expanding access to vital care for our ageing population.
The Youth Guarantee Scheme is an important step forward for youth employment, which will encourage many more employers to invest in young people’s futures.
Alban Stowe, Director of Government Partnerships at youth charity, The King’s Trust, said:
Young people are full of potential, but too often they’re held back by a lack of opportunity. Giving them the chance to prove themselves in the workplace is one of the most powerful ways to tackle unemployment.
The Youth Jobs Grant and wider Youth Guarantee are an important step in making that happen – supporting young people to develop the skills they need for the world of work and helping employers to open their doors and invest in the next generation.
It’s particularly encouraging to see the focus on working with employers to open up more roles for young people – because it’s those early opportunities that can make all the difference in helping them build confidence and start their careers.
Karin Sheppard, Managing Director, Europe at IHG Hotels & Resorts, said:
We welcome the Government’s commitment to supporting young people to gain important employment, training and learning opportunities. The hospitality sector is the largest employer of young people in the UK, and has a key role to play in providing valuable hands-on experience of the workplace, as well as a wide range of avenues to build a successful and rewarding career. IHG Hotels & Resorts has long been committed to offering opportunities for young people, and we support the Youth Guarantee alongside fellow hospitality sector leaders.
Denise Hatton, Chief Executive of YMCA England & Wales, said:
YMCA welcomes today’s announcement and the Government’s continued focus on helping more young people into work. For too many young people, the biggest barrier isn’t a lack of ambition - it’s a lack of opportunity, confidence and the right support at the right time.
Financial incentives for employers will play an important role in opening doors, particularly for young people who have been locked out of the labour market for long periods. But these jobs must be accompanied by the personalised support that helps young people overcome the challenges they face, build their confidence and stay in work.
Across our YMCA network, we see every day what can be achieved when employment opportunities are combined with mentoring, wellbeing support and skills development. We look forward to working with Government, employers and local partners to ensure these new opportunities lead not just to jobs, but to long-term careers and brighter futures for young people.