Sir Keir Starmer has confirmed that from Tuesday, June 30, employers will be able to claim a £3,000 payment from the Department for Work and Pensions (DWP) when they hire an eligible young person who has been unemployed for six months. This initiative is designed to support up to 60,000 young people aged 18 to 24 in taking their first professional steps over the next three years.
The Youth Jobs Grant represents a significant investment in the next generation, aiming to break down barriers that have long held young talent back. Employers can easily apply via a simple online form, and payments will be made in two instalments once the young employee’s work and earnings have been verified by the DWP.
Prime Minister Keir Starmer said, “Every young person deserves the chance to reach their full potential. Too often, systemic obstacles limit their opportunity. We are committed to changing that with real reforms that open doors to learning and employment. This programme lays the foundation for a new agreement with the next generation—ensuring a clear path into work or education and building a brighter, more secure future.”
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This announcement comes just a week after Starmer stepped down as Prime Minister, with Andy Burnham expected to succeed him.
Work and Pensions Secretary Pat McFadden added, “Young people want to work, learn, and earn to build a better future. This grant supports employers—big and small—to give young people the vital first chance they need. Working together, we can transform young lives. I’m pleased to see companies like Merlin committing to create hundreds of roles, and I encourage more employers to join the Youth Guarantee.”