DWP unveils £3,000 grant to boost jobs for 16-24 year olds on Universal Credit

The Department for Work and Pensions has detailed a new support package for young Universal Credit claimants, promising to assist up to 50,000 people aged 16 to 24 into employment. Employers hiring a claimant aged 18-24 who has been out of work for over six months become eligible for a £3,000 Youth Jobs Grant, split into £1,800 after six weeks and £1,200 after eighteen weeks. In addition, a £2,000 apprenticeship hiring payment is available for employers taking on 16-24-year-old apprentices, with extra £1,000 contributions for apprentices under 19 or those with an EHCP or care experience.

The government also plans to fund apprenticeship training fully for all eligible under-25s, backed by a £1 billion Growth and Skills Levy. These steps respond to a rise in youth unemployment to 751,000, a 109,000 increase from the previous year, and an unemployment rate of 16.4% during the May-July period. The DWP cited the Apprenticeship Ambassador Network, which mobilises around 3,000 employers and apprentices, to help small businesses recruit and retain young talent.