The Department for Work and Pensions (DWP) has confirmed a major expansion of its Jobs Guarantee scheme, extending eligibility to thousands of young disabled people and those with long-term health conditions receiving Universal Credit. The move, praised by charities, will offer participants a guaranteed job on a voluntary basis from week 13 following their Work Capability Assessment.
Who is eligible under the expanded scheme
The new change applies to Universal Credit claimants in the Limited Capability for Work (LCW) and Limited Capability for Work and Work-Related Activity (LCWRA) categories. These claimants receive the health element of Universal Credit, which provides additional funds on top of the standard allowance for those unable to work due to a health condition or disability.
Government figures released this year show that around 430,000 people receiving the health element were assessed as having limited capability for work, while 2.8 million were assessed as having limited capability for work and work-related activity.
Support and wage costs covered
Participants will receive mentoring and bespoke support covering mental health, finances and housing to help them prepare for work. Employers will be aided with the costs of taking on new staff, with the government covering 100% of wage costs for up to 25 hours per week across six months.
The rollout to young people on health benefits will commence from April 2027 and forms part of the government's £3.5 billion investment aimed at tackling the disability employment gap. The overhaul incorporates the 'right to try' guarantee revealed earlier this year, which permits those receiving sickness benefits to attempt to enter the workforce without the immediate fear of losing their entitlements.
Reactions from charities and business
The scheme is designed to help up to 90,000 young people into work by the end of the Parliament. Tesco, business leaders and charity chiefs have embraced the changes, which follow the launch of the Opening Shift programme, a nationwide retail work experience scheme delivered in partnership with the DWP, providing over 11,000 work experience placements to young people facing the greatest barriers to employment.
James Taylor, Executive Director at disability equality charity Scope, said: "This scheme could give many young disabled people a much-needed foot in the door. For too long, disabled young people have been locked out of work by barriers beyond their control. They have been overlooked when they apply for jobs, denied the support they need at work, and too often left without the opportunities they deserve."
Dr Sarah Hughes, CEO of Mind, said: "Many young people with mental health problems tell us that they'd love to work but can't find the right support or opportunities in order to do so. If delivered in a genuinely supportive way, this offer could be life changing for a young person struggling with their mental health."
Emma Taylor, Chief People Officer at Tesco, said: "We welcome the Government's expansion of the Jobs Guarantee, which will help more young people with disabilities and long-term health conditions access the opportunities, experience and support they need to get started in the world of work."
How Universal Credit and the Work Capability Assessment work
Universal Credit is a monthly payment intended to help with living expenses. Claimants may receive an extra amount if they have a health condition or disability that limits the amount of work they can undertake. The DWP calls this their 'capability to work'. The monthly payment is calculated based on personal circumstances, including health condition or disability, income and housing costs.
Once a health condition or disability, or a change in circumstances, is reported, claimants may be required to attend a Work Capability Assessment. However, they might not be asked to complete one if they earn more than £881 per month. Further information can be found on the dedicated gov.uk web page.
