Government unveils £1bn youth jobs package as minister signals fresh welfare push
Mar 16th 2026
Pat McFadden announced a £1bn package of employer grants and new apprenticeship incentives to tackle youth unemployment and signalled a renewed push for welfare reform that he said Labour MPs should support.
- The government announced a £1bn youth employment package including employer and apprenticeship incentives.
- Companies will receive £3,000 for each hire aged 18 to 24 on benefits who has been looking for work for at least six months, with a target of 200,000 jobs.
- Small and medium businesses will get £2,000 for each new 16 to 24-year-old employee under a staggered payment scheme starting in June.
- The government will remove several management apprenticeships that are mostly taken by employees over 25.
- Work and Pensions Secretary Pat McFadden said he sees no reason Labour MPs should oppose welfare reform that prioritises work and value for money.
- Nearly one million young people are not in education, employment or training and about 45 percent of them are recorded as sick or disabled.
- Opposition and employer groups criticised the changes, citing concerns about disappearing opportunities, higher taxes for employers, and defunding of some apprenticeships.