UK to expand youth job guarantee program amid rising unemployment

Investing.com -- The UK government plans to expand and accelerate its youth job guarantee program nationwide, aiming to help more than 90,000 young people secure employment by March 2029.

The Department for Work and Pensions said the scheme would become available across all areas of Great Britain, extending support beyond the six locations where it was initially introduced earlier this year.

From April 2027, eligible young people will gain access to guaranteed employment opportunities after 12 months in the program, compared with the current 18-month threshold.

The changes come as Prime Minister Andy Burnham’s government seeks to address rising youth unemployment and economic inactivity, particularly among people outside employment, education or training.

Nearly one million young people in the UK were classified as not in employment, education or training during the second quarter of 2026.

The government previously committed £2.5 billion ($3.3 billion) over three years to the job guarantee program and other initiatives aimed at improving employment prospects for younger workers.

The expansion comes ahead of a review by former Labour lawmaker Alan Milburn, scheduled for publication Tuesday, examining the underlying causes of rising youth economic inactivity.

Milburn has called for young people to receive a legal guarantee of employment, training or job-seeking assistance.

He has also advocated redirecting government spending toward employment support rather than relying heavily on unemployment benefits.

The policy forms part of broader efforts to contain Britain’s growing welfare expenditure, which is projected to reach £431 billion in the 2031-32 financial year.

That compares with an estimated £334 billion in 2025-26, with both figures including state pension payments.

Under the existing program, participants must be actively seeking employment and receiving Universal Credit, the UK’s principal means-tested welfare benefit.

The government’s planned expansion will extend access beyond the initial trial areas as policymakers prepare to assess Milburn’s recommendations on improving youth employment outcomes.