A £1 billion youth employment drive aims to create 200,000 jobs and opportunities for young people, alongside major reforms to apprenticeships. Announced by Work and Pensions Secretary Pat McFadden, the new “New Deal” includes:

• A Youth Jobs Grant offering employers £3,000 for hiring 18–24-year-olds on Universal Credit, expected to support 60,000 young people over three years.
• Expansion of the Jobs Guarantee from ages 18–21 to 18–24, creating 35,000 additional subsidised roles (over 90,000 total).
• A £2,000 Apprenticeship Incentive for SMEs hiring 16–24-year-olds, contributing to a target of 50,000 new apprenticeships.
• Reforms to the Growth and Skills Levy to prioritise young apprentices and improve pathways into work.

The announcement comes as apprenticeship starts among young people have fallen by 40% over the past decade, with nearly one million young people not in education, employment or training. Prime Minister Sir Keir Starmer said the government is focused on expanding routes into work and boosting opportunities for young people.