By Anna Jordan on Small Business UK – Advice and Ideas for UK Small Businesses and SMEs
The government announced A Youth Jobs Grant that will pay businesses to hire young people aged 18-24 who are on benefits and have been out of work for six months or more.
Businesses will get £3,000 for each employee. The government is attempting to tackle rising numbers of NEET (not in employment, education or training) young people, with figures reaching 957,000 in October-December 2025.
It’s hoped that the scheme will help 60,000 young people to get into work over the next three years.
How do I qualify for the Youth Jobs Grant?
The government is still to lay out how it will do this in future.
What other measures are coming in?
There were a couple of other announcements you should know about. Work and Pensions Secretary, Pat McFadden, also said:
A similar scheme, the Jobs Guarantee, is going to become broader. From Autumn 2026, the upper age limit will extend from 21 to 24, with the aim of adding 35,000 extra subsidised jobs. This means that SMEs will get paid for hiring a benefit claimant who’s been looking for work for 18 months, as long as they’re 18-24.
Government-supported
