The CIPD supports the UK Government’s incentives to help young people into work, but a broader apprenticeship guarantee would give both employers and young people more certainty.
The CIPD welcomes the UK Government’s plans to invest £1 billion in creating 200,000 jobs for young people, particularly new incentives to help employers create entry-level jobs and apprenticeships.
The new Youth Jobs Grant and expanded Jobs Guarantee reflect changes we have been calling for. However, past incentive schemes have had mixed success, so it's important these deliver meaningful results.
The introduction of incentives for employers who take on people searching for work for six months or more will be especially important for small and medium-sized businesses.
These businesses play a vital role in employing young people but often face tighter budgets and less capacity when creating new roles.
With the number of young people not in education, employment or training rising sharply in recent years, rebuilding clear routes into work must be a priority.
For the incentives to work, it's important that meaningful jobs are created which also support skills development. The process for claiming the incentives needs to be simple and clearly communicated.
For young people, paid placements are crucial. They help build essential skills, boost confidence and give people valuable experience of the workplace.
This support can also help balance out measures in the Employment Rights Act 2025 that could mean employers are less likely to take a chance on young workers with limited experience.
“Young people and employers alike would benefit from an apprenticeship guarantee that would apply to all 16-24-year-olds in the UK that meet minimum requirements.”
The packages announced are wide-reaching, but young people and employers alike would still benefit from an apprenticeship guarantee that would apply to all 16-24-year-olds in the UK who meet minimum requirements.
This would give young people a firm basis for earning and learning, while helping employers build a pipeline of talent. Nine in ten employers we surveyed back such a move.
To make sure the placements benefit business as well as young people, we need to ensure smaller businesses get practical advice and support to develop roles for young people.
Strengthening people management in smaller firms will be key to making sure these opportunities help young people build essential skills, gain meaningful experience and progress in work.
The government announced plans to invest an additional £1 billion in grants to unlock over 200,000 paid jobs for young people, expanding the Jobs Guarantee to ages 18-24 and introducing new foundation apprenticeships in hospitality and retail.
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