Labour Expands Youth Work Schemes as Spending on Benefits Outpaces Job Support
Labour Expands Youth Work Schemes as Benefits Spending Outpaces Support

The Labour government is set to significantly expand youth work experience and training schemes following a stark warning from former minister Alan Milburn that Britain is neglecting a generation of young people. Work and Pensions Secretary Pat McFadden will announce plans for 300,000 additional work experience placements over the next three years, aiming to address what he describes as a 'quiet crisis' in youth employment.

Alarming Statistics on Youth Unemployment

Nearly 1 million 16- to 24-year-olds are currently not in education, employment, or training (Neet). McFadden highlighted that almost 60% of these young people have never held a job. 'It's a quiet crisis, a ticking timebomb, which risks their future working lives,' he said. 'It's hardest for young people without family connections. No job because they have no experience and no experience because they don't have a job.'

McFadden noted that many traditional entry-level jobs have disappeared as retail employment declines and the pandemic disrupted workplace experience for younger individuals. 'Talent is spread evenly across the country, but opportunity is not,' he added.

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Expansion of Sector-Based Work Academy Programmes

The government hopes that expanding sector-based work academy programmes (Swaps) will help reverse the trend. Approximately half of the new placements will come through Swaps, which are six-week training schemes that guarantee job interviews at the end. New analysis from the Department for Work and Pensions suggests that young people who participate in Swaps are 13% more likely to be in work two years later compared to those who did not take part. Additionally, four in 10 participants move into sustained employment within six months.

Nearly 100,000 Swaps took place in 2025-26, with 25,000 young people aged 16-24 starting one this year—a record number. Ministers are targeting 115,000 placements next year.

Alan Milburn's Stark Warning

Alan Milburn, a former Labour health secretary, warned that the country has become 'neglectful' of a generation struggling to access work and training opportunities. 'This is really shameful,' he told the BBC's Sunday with Laura Kuenssberg programme. 'We as a society, and we in politics, have been neglectful of what is frankly a scandal.'

Milburn delivered a stark assessment of Britain's welfare system, stating that ministers spend far more supporting young people out of work than helping them into employment. 'For every £25 that we spend keeping young people on benefits, we spend only £1 helping them get into work through employment support,' he said.

Construction Sector Leading the Way

Construction accounted for almost 17,000 Swaps starts, making it the largest sector. Employers including Manchester Airport Group, JD, and Gatwick airport have backed the expanded placements. Milburn emphasised that Britain faces a generational crisis. 'The old contract in society was that each generation would do better than the last. So this is the first generation where that contract is being broken,' he said.

Mental Health and Neurodiversity Concerns

Milburn also highlighted the sharp increase in young people reporting work-limiting health conditions, particularly concerning mental health and neurodiversity. 'It's a real thing, it's not a fake thing,' he said. 'This is a generation living with more distress, more anxiety.' However, he questioned why a diagnosis or condition should lead to a life on benefits rather than integration into the workforce. 'The real question is, just because you've got a diagnosis or a condition, why should that lead you to being transported into a world of benefits rather than into the world of work?'

Potential Bursaries for Families

According to the Times, families on benefits could receive hundreds of pounds a month via a bursary to prevent them from discouraging their 16- and 17-year-old children from taking apprenticeships. McFadden is reportedly considering a targeted system to address cases where parents are left significantly worse off when their children begin apprenticeships due to losing child benefit and elements of universal credit.

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