UNEMPLOYED young people will be offered jobs at major companies such as JD Sports, B&M and KFC under a scheme that will open shortly.
The Government scheme will see those aged 18 to 21 who have been on Universal Credit long-term given guaranteed jobs.
Those that do not accept the work placement may have their benefits cut under the new scheme.
The jobs offered will include retail, restaurants, gyms, and hotels.
TUI, B&M, KFC, JD Sports, Gym Group, Home Bargains, EON, Tesco and Leonardo Hotels are some of the 66 employers that have indicated to the Department for Work and Pensions (DWP) they will take part.
The Youth Guarantee scheme was initially announced by Chancellor Rachel Reeves towards the end of last year. It is due to launch this spring.
Unemployment among young people soaring since Covid pandemic
The Government reportedly hopes that the scheme will save money on the benefits bill by creating 350,000 new jobs.
“Today’s figures show there are 513,000 more people in work compared to this time last year, but also highlights why we must go further, especially for our young people,” Pat McFadden, Secretary of State for Work and Pensions, said.
“That’s why are investing £1.5 billion to get hundreds of thousands of young people earning or learning, while former Health Secretary Alan Milburn is leading a review to help us get to the root of what is holding the younger generation back.
“Through our Jobs Guarantee launching this month we are helping young people find paid work placements, and we urge employers to come forward and join the likes of EON, JD Sports, Tesco and TUI who are already pledging their support.”
The number of NEETs – young people not in education, employment or training – has soared since the pandemic.
There are around one million young NEETs in the UK today – up 26% in six years.
That’s one in eight people aged between 16 to 24, according to the Office for National Statistics (ONS).
Men are now more likely to be NEETs, overtaking women in the past few years.
The number of job openings have been falling, according to the ONS, with many firms reportedly not recruiting new workers or replacing those who have left.
Total estimated vacancies were down by 9.6% in September to November 2025 from the same period a year before.
There are 2.5 unemployed people for every vacancy, up from 1.8 in the previous year.
Meagan Levin, policy manager at charity Turn2us, told The Sun that they welcomed plans to tackle youth unemployment.
She added: “Rising youth unemployment is a complex problem. It’s being driven by tough economic conditions, rising mental ill-health, inadequate financial support and employment support that often knocks confidence and treats people like children.
“For some young people, even the basic costs of starting work, like travel, can put jobs out of reach.
“If this scheme is going to make a real difference, the government needs to go further.
“That means adequate financial support, more effective employment support that builds confidence, and less punitive sanctions that push young people deeper into hardship.
“A job can change a young person’s life, but only if the system around it is strong enough to help them stay there.”
How will the guaranteed jobs scheme work?
The scheme will open first to 1,000 people on Universal Credit in Birmingham, the East Midlands, Greater Manchester, Hertfordshire and Essex, central Scotland and south Wales.
Those areas are considered to be the places with the greatest level of need.
The number of people on the scheme will eventually increase to 55,000.
More than 1,000 young people are expected to start a job in the first six months of the scheme, said the Government.
Around 900,000 young people on Universal Credit will also receive dedicated work support sessions and four weeks of intensive support.
The Government will cover the cost of the employees’ wages for 25 hours a week for 18 months and fund training, plus any other support needed.
Young people will be paid minimum wage and applications are due to open this spring.
Details regarding how to apply are not yet known but we will update you when more is known.
Ms Reeves previously said: “I will never be satisfied while too many people’s potential is wasted, frozen out of employment, education, or training.
“There’s no defending it. It’s bad for business, bad for taxpayers, bad for our economy, and it scars people’s prospects throughout their lives.
“Just as the last Labour government, with its new deal for young people, abolished long-term youth unemployment, I can commit this government to nothing less than the abolition of long-term youth unemployment.”
