Young people on Universal Credit are being offered six months of paid work earning at least the National Minimum Wage under a new UK Government scheme already being delivered in parts of Scotland.
The Jobs Guarantee provides a direct route into employment for 18 to 24-year-olds who have been claiming Universal Credit and looking for work for 18 months. The UK Government will fully fund up to 25 hours of work a week for six months, as well as minimum automatic enrolment pension contributions, with more than 90,000 jobs expected to be created by 2029.
First phase rollout
The first phase has been rolled out in areas with some of the highest levels of youth unemployment, including Central and East Scotland, where The King's Trust has begun delivering the programme. It is also operating in Birmingham and Solihull, the East Midlands, Greater Manchester, Hertfordshire and Essex, and South East and South West Wales.
The scheme will expand later this year to all eligible 18 to 24-year-olds on Universal Credit who have been looking for work for 18 months.
Investment and early jobs
The Jobs Guarantee forms part of a £2.5 billion UK Government investment in youth employment, which is expected to support almost one million young people and provide 500,000 opportunities to earn or learn over three years. It comes as more than one million young people across the UK are not in education, employment or training.
The first young people supported through the Jobs Guarantee have already started work, including positions at Boots in administrative, retail and warehouse support roles. Participants will also receive tailored help to tackle barriers to employment, including confidence building and skills training while on the job.
Minister's comments
Work and Pensions Secretary Pat McFadden said young people should not be blamed for the difficulties they face getting into employment. Speaking during a visit to a Boots warehouse in Nottinghamshire, he said: “We mustn’t blame young people for the challenges they are facing in the labour market.
“Sometimes it’s the system - fit for work and unfit for work - they didn’t design that, the designers of Universal Credit designed that.”
McFadden criticised what he described as a flaw in the Universal Credit system, arguing it can too readily separate people into those considered fit or unfit for work. He described this as a culture of people being “signed off and written off” and said the distinction was too “black and white”.
He said: “Work is the answer - or training, or more education, purposeful activity is the answer.”
McFadden said some of the young people he met had been unemployed for several years and were now earning money through their first jobs. He said: “These are young people who’ve been out of work for one, two, maybe four years, 20 years old, they’ve got their first job here, most of them have only been working here for a couple of weeks, and you can already see how it’s changed their confidence in themselves, their sense of belief in themselves.”
Delivery in Scotland
The King's Trust is delivering the first phase of the programme in Central and East Scotland. Louise Goodlad, Director of Delivery for Scotland at The King's Trust, said: “The King's Trust has begun delivering the first phase of the Jobs Guarantee programme in Central and East Scotland, and we are seeing first-hand the determination of young people who want to work as they seize the opportunity to gain experience and develop their skills.
“The Jobs Guarantee will create opportunities for young people at greatest risk of long-term unemployment while helping employers access the talent they need to grow.”
McFadden also said the programme formed part of the Government's efforts to reduce the benefits bill by helping more people into employment. He said: “Every single young person here who is now working is no longer on benefits.
“We do want to get the benefit bill down, but we want to do it by putting working opportunity at the heart of what we’re doing.” He added when employment opportunities are created, the UK Government expects young people to engage with them.
Shadow work and pensions secretary Helen Whately said young people wanted “a proper job” and accused the Government of damaging employment opportunities through higher costs and employment regulations. She said the Conservatives would seek to boost apprenticeships and reform welfare so young people were better off in work.
