The Government has confirmed it will broaden a taxpayer-funded initiative designed to help young people into work to include under-25s who have been claiming benefits for a year.
Every eligible 18 to 24 year old will be "guaranteed" a fully-funded, six-month job matched to their skills after 12 months on universal credit – down from the existing 18 months, the Department for Work and Pensions (DWP) said.
Scheme details and rollout
Under the scheme, which will be rolled out nationwide from the end of November, the Government pays for up to 25 hours of paid work a week at the relevant minimum wage.
Officials confirmed that the reduction in the length of time a benefit claimant must wait before qualifying for the programme will take effect in April next year.
This follows calls from the author of a major forthcoming report on tackling the rise in youth unemployment, who argued that young people deserve a legal "guarantee" of a route into work.
Milburn report recommendations
Alan Milburn, whose recommendations will be published on Tuesday, told the BBC that the Government should be obligated to ensure young people have access to either training, work or employment support.
He suggested this could operate similarly to the way local councils have a legal responsibility to offer accommodation or advice to the homeless, or to house children in care.
The former Labour health secretary argued that previous employment schemes have been short-term and fall well short of addressing the issue of young people not in education, employment or training. The DWP's current scheme is termed the "jobs guarantee" but does not feature a legal obligation.
Officials have stated funding for the programme derives from the Government's broader £2.5 billion employment support package.
Mr Milburn's review will put forward a series of recommendations on how to reduce the number of Neets – 18 to 24-year-olds not in employment, education or training – which exceeded a million earlier this year for the first time in over a decade.
He is anticipated to propose that under-25s should no longer be eligible to claim the health element of universal credit or personal independence payments, transferring them instead to a "youth allowance", paid at the same level as the standard rate of universal credit.
Political reaction
Some Labour MPs – who last year pressed Sir Keir Starmer's government to dilute proposed welfare cuts – have expressed concerns over the scope of future support after Mr Milburn suggested some could receive reduced benefits.
Ahead of its publication, Andy Burnham has characterised the report as a "watershed moment" but fell short of pledging to implement its recommendations in full.
The Prime Minister also maintained paying for the reforms would not mean "more money" but "spending differently" in Government when challenged on the substantial upfront investment they are expected to require.
Unveiling the expansion of the youth employment scheme, Work and Pensions Secretary Pat McFadden said: "The longer someone is out of work, the harder it is to get back in, and no young person should be left waiting on a scrapheap for an opportunity."
"That is why we are expanding our guaranteed jobs scheme across Great Britain and bringing it forward, so that help arrives when it matters most."
"Employers are crying out for talent and there is a generation of talent ready to be unleashed. We are backing them with the support they need to build a fulfilling future."
The Conservatives said the test of Mr Milburn's review would be whether it paves the way for "real jobs", arguing that "shuffling more young people onto subsidised placements will not solve the underlying problem".
Conservative leader Kemi Badenoch said: "The Government is making it harder for businesses to take people on, then bringing in schemes to deal with the consequences."
"Our rescue mission for young people will create the jobs they need by halving the jobs tax, cutting business rates for 250,000 high street businesses and generating 100,000 apprenticeships a year."
"Alan Milburn is right that the system needs to change. We've found £36 billion in welfare savings and will support the reforms that genuinely help people."
"But young people do not need another Government scheme that leaves them waiting. They need businesses in the private sector to have the confidence to create jobs and give them a first chance."
