The investment will create 350,000 new workplace and training opportunities across key sectors such as construction, health and social care, and hospitality. These placements will offer on-the-job skills development, employer networking, and tailored coaching to help young people on Universal Credit move into long-term work.

A further 900,000 young Universal Credit claimants looking for work will receive an initial dedicated support session followed by four weeks of intensive coaching. Work coaches will guide them into one of six pathways: work, work experience, apprenticeships, wider training, learning, or a training programme with a guaranteed interview.

As part of the reforms, 55,000 young people will also be offered a government-backed guaranteed job, rolling out from Spring 2026 in areas with the highest need, including Birmingham & Solihull, Greater Manchester, the East Midlands, Hertfordshire & Essex, Central & East Scotland, and Southwest & Southeast Wales. More than 1,000 young people are expected to start jobs in the first six months.

Youth Hubs will also expand to every local area, bringing the total to over 360 nationwide. These hubs provide support such as CV help, skills programmes, mental health support, and housing and careers advice.

Young people will be expected to participate in the opportunities offered, with benefit sanctions possible for those who do not engage without good reason.

Work and Pensions Secretary Pat McFadden said the funding represents a “downpayment on young people’s futures,” creating real pathways into secure employment. Education Secretary Bridget Phillipson said new early-warning systems and smarter data tools will help prevent young people falling out of education unnoticed.

The package responds to data showing that nearly one million young people are NEET, a 26% rise since before the pandemic.

The measures build on further initiatives, including youth trailblazers, a government-commissioned review led by Alan Milburn, early-intervention funding (including a new Risk of NEET tool), alternative provision support, improved attendance monitoring, and pilot automatic enrolment in further education for school-leavers without a place.

The government is also preparing to launch its National Youth Strategy, shaped by the views of over 14,000 young people.