On Wednesday, Chancellor Rachel Reeves unveiled the Autumn Budget, setting out major changes to welfare, wages, and education. Several measures are expected to impact young people, including:

  • The government announced abolition of the two‑child benefit cap (on benefits/Universal Credit), meaning families with three or more children will again be eligible for support. This is forecast to lift around 450,000 children out of poverty by 2029-30, compared with if the cap had stayed.
  • The Budget confirmed funding for a Youth Guarantee: £820 million to support young people (aged 18–21) on benefits who have been unemployed for extended periods, giving them access to paid work placements/work-experience. Additional support for apprenticeships and training: free training/apprenticeship funding for under-25s at small and medium enterprises (SMEs).
  • Wage increases: National Living Wage rises to £12.71/hour from April for over-21s, boosting annual earnings by about £900 for 2.4 million workers. Minimum wage for 18–20-year-olds increases 8.5% to £10.85/hour, narrowing the gap with older workers.
  • SEND costs absorbed: From 2028/29, special educational needs and disabilities provision will be centrally funded to ease pressure on local authorities.
  • School investment: Extra funding for secondary school libraries and upgrades to around 200 playgrounds in England to improve learning environments.
  • See London Youth – Budget Offers Some Hope, But Long-Term Support for Youth Work Must Follow &  Kirsty Beeston on LinkedIn for youth sector reactions to the budget.

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