Young people could lose benefits if they refuse to work, says pension minister
Young people on benefits will be offered fresh job opportunities in sectors including construction and hospitality as part of the government’s bid to tackle rising youth unemployment, with those who refuse to engage at risk of losing their benefits.
The government will fund 350,000 training and work experience placements, as well as guarantee 55,000 jobs in areas it says are in the highest need from spring 2026.
The funding will come from the £820m package previously announced by Chancellor Rachel Reeves in the November Budget, aimed at helping almost one million off Universal Credit and into work.
Work and Pensions Secretary Pat McFadden said the plans would help young people “make something of their lives”, describing the funding as “a down payment on young people’s future.”
The government already announced in September that it intended to provide guaranteed work placements for 18-21-year-olds who had been out of work or education for longer than 18 months, with those not taking up the offer without good reason facing losing their benefits.
Help in certain regions
The government backed jobs, which will also span into the health and social care sector, will be available in regions including Greater Manchester, Birmingham and Solihull and the East Midlands.
Those looking for work will be given a “dedicated work support session” coupled with four additional weeks of “intensive support”.
An employment coach will then refer them to one of six pathways, which range from work, work experience, apprenticeship, wider training, learning, or a workplace training programme with a guaranteed interview.
The government expects more than 1,000 young people to start a job in the first six months of the scheme.
However, shadow work and pensions secretary Helen Whately criticised the scheme, saying: : “The Chancellor’s tax hikes are driving up youth unemployment, snatching a career from a generation of young people.”
“This scheme is nothing more than taking with one hand to give with the other.”
Refusing to engage could lead to a loss of benefits
McFadden said young people could lose their right to universal credit if they don’t engage with the plans, admitting “doing nothing should not be an option”.
In an interview with Sky News’ Trevor Phillips, he said: “We see this as both an offer and an obligation.
“What I want to see is young people in the habit of getting up in the morning, doing the right thing, going to work.
“That experience of that obligation, but also the sense of pride and purpose that comes with having a job.”
He added that he has been “struck” by the growing number of young people outside of education, employment and training over the “last four years or so”.