Youth Guarantee secures £820m to support young people into work
Responding to the Chancellor's Youth Guarantee announcement at the Autumn Budget announced on 26 November 2025, Rebecca Florisson, Principal Analyst, Work Foundation at Lancaster University said:
“The announcement of £820m of funding for the Government’s Youth Guarantee over the coming three years is welcome, with nearly a million young people not in employment, education, or training. However, there is a risk the Youth Guarantee will be too blunt an instrument to successfully support young people into secure and sustained employment.
“In particular, any approach that relies on the blanket withdrawal of benefits from young people in return for a six-month paid job placement carries significant risks. Evidence is clear that forcing individuals into ‘any job’ can do more harm than good to their future employment prospects. Young people are already twice as likely to end up in insecure, poorly paid jobs.
“The DWP’s own data shows nearly half of young people not in employment, education or training are now classed as disabled (45.8%). It is clear that a more nuanced, blended approach to work placements and welfare support will be vital.
“In addition, the offer of a six-month paid work placement will only be available to 18-21 year olds – meaning many young NEETs may miss out compared to if eligibility was widened to 16-24 year olds. And as it stands, the Youth Guarantee will only kick in after a young person has been out of work for 18 months, despite evidence clearly indicating that the longer someone is out of the labour market, the harder it can be to support them into sustained employment.”
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