New DWP update
Certain young Brits born between 2002 and 2010 can get extra help from today under a new Department for Work and Pensions scheme.
The new regime offers apprenticeships, work experience, skills training and one-to-one coaching. The DWP has updated its guidance to roll out the Youth Guarantee Journey, which is aimed at Universal Credit claimants aged between 16 and 24 across England, Scotland and Wales. The scheme promises tailored support to help young people prepare for work, improve their CVs, practise interviews and move into employment more quickly.
Those taking part will continue receiving Universal Credit while working with Jobcentre staff to agree a personalised plan to help them find a job.
Each claimant will receive an employment and skills review shortly after making a Universal Credit claim before having regular appointments with a work coach.
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After 13 weeks they will attend a 'gateway' meeting to agree the next stage of their journey, which could include moving into work, starting an apprenticeship, undertaking work experience or beginning further education or training that fits alongside their Universal Credit claim.
Some young people may also be referred to one of more than 100 Youth Hubs across Great Britain, where specialist advisers provide additional careers advice, confidence building and interview preparation.
Others facing more complex barriers to employment can receive support from dedicated youth employability coaches for up to six months, with continued help for six weeks after starting a job.
The move comes as new research published today warns that youth unemployment has reached a worrying milestone.
A report by the Resolution Foundation says the number of 16 to 24-year-olds who are not in education, employment or training (NEET) has climbed above one million for the first time in 13 years.
The think tank warned that even relatively short periods of unemployment when young can have "scarring effects" on future earnings, employment prospects and wellbeing throughout adult life.
Its analysis concludes that targeted employment schemes offer far better value for taxpayers than broad tax breaks or wage subsidies.
Among the options examined, the Foundation estimates a wider Jobs Guarantee could create around 17,500 additional jobs each year at a cost of around £37,000 per job, while expanding the existing Youth Jobs Grant could create about 2,800 extra jobs annually at a similar cost.
By contrast, restoring employer National Insurance relief for under-25s would create only around 7,000 additional jobs a year while costing the Exchequer around £132,000 for every extra job created.
The report also argues ministers should abandon plans to fully align the minimum wage for 18 to 20-year-olds with the National Living Wage, saying the policy risks pricing some younger workers out of the labour market despite increasing pay for others.
It also calls for the Youth Jobs Grant to be expanded to 80,000 places a year, the Jobs Guarantee to be extended to more young Universal Credit claimants and apprenticeship funding to be ringfenced for under-25s in a bid to tackle rising youth unemployment.