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UK Unveils £820m Package to Combat Youth Unemployment

Published 7 December 2025

The UK government has unveiled an £820 million funding package to combat rising youth unemployment, offering training, work experience, and guaranteed jobs to nearly one million young people on Universal Credit. The initiative, drawn from Chancellor Rachel Reeves's November budget, targets those aged 18 to 21 who have been out of education, employment, or training for extended periods, with placements beginning soon and jobs rolling out from spring 2026 in high-need regions.

Under the plan, 350,000 individuals will receive training and work experience opportunities in sectors such as construction, hospitality, health, and social care. These placements aim to build practical skills, strengthen resumes, and prepare participants for interviews. Additionally, 900,000 young people claiming Universal Credit and seeking work will access a dedicated support session, followed by four weeks of intensive coaching. Work coaches will then direct them to one of six pathways: direct employment, work experience, apprenticeships, broader training, learning programs, or a six-week workplace initiative ending in a guaranteed job interview.

The guaranteed jobs, numbering 55,000, will be subsidized...

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