The UK government has unveiled an ambitious £820 million package designed to tackle soaring youth unemployment, a crisis that has left nearly one million young people aged 16 to 24 not in education, employment, or training—commonly known as "Neets." The scheme, announced on December 7, 2025, by Work and Pensions Secretary Pat McFadden, aims to provide real pathways into work for hundreds of thousands of young people while raising pointed questions about the future of the country’s struggling hospitality sector and the effectiveness of sanctions for those who do not participate.
According to The Independent, the government’s plan focuses on offering 350,000 young people on universal credit training and work experience in sectors such as construction, hospitality, and health and social care. For those who engage, the promise is clear: up to 55,000 government-backed, guaranteed jobs starting from spring 2026, and four weeks of intensive support to help secure employment or training. But for those who refuse to take up these opportunities without a "good reason," McFadden has confirmed that sanctions, including the loss of some benefits, will be enforced.
“Every young person deserves a fair chance to succeed. When given the right support and opportunities, they will grasp them,” McFadden stated, as reported by LBC. He emphasized that “sitting at home doing nothing is not an option,” underlining the government’s expectation that young people take up the support offered. The Department for Work and Pensions echoed this stance, noting that sanctions would only apply to those who fail to engage with support without justification.
The urgency of the initiative is underscored by the latest figures: the number of Neets has surged to 940,000, up by 195,000 in just two years—a trend driven largely by increasing rates of sickness and disability, according to The Guardian. The Resolution Foundation has warned that this figure is on track to reach one million for the first time since the aftermath of the 2008 financial crisis, when it peaked at 1.2 million in 2012.
Yet, the government’s approach has not been without criticism. The hospitality sector, a traditional entry point for young workers, is itself in deep crisis. The British Beer and Pub Association (BBPA), representing over 20,000 pubs, estimates that 378 pubs will close in 2025 alone, resulting in the loss of 5,600 jobs. The sector’s woes have been exacerbated by Labour’s increase in employers’ national insurance contributions (NICS) in the 2024 Budget and a recent rise in the National Minimum Wage. Michael Kill, chief executive of the Night Time Industries Association, warned, “You cannot subsidise people into jobs that no longer exist.”
Ben Harrison, director of the Work Foundation at Lancaster University, offered a measured endorsement of the government’s funding and intensified work coaching, but cautioned that “if reforms end up pushing young people into ‘any job’ under the threat of benefit sanctions, they may do more harm than good to their future work prospects.” Harrison also pointed out that nearly half of young Neets report being disabled, making it vital that participants have some agency over the types of jobs and sectors they enter.
In response to these concerns, the government has outlined additional measures. Chancellor Rachel Reeves announced £725 million to fund 50,000 extra apprenticeships, with £140 million managed by local mayors to link young people with local businesses. The government has also promised to fully fund apprenticeships for under-25s with small and medium-sized businesses, eliminating the previous requirement for companies to contribute 5% of the cost. “If you choose an apprenticeship, you should have the same respect and opportunity as everyone else,” said Prime Minister Keir Starmer. “It’s time to change the way apprenticeships are viewed and to put them on an equal footing with university.”
The job guarantee program, set to launch in spring 2026, will prioritize regions with the highest need, including Birmingham and Solihull, the East Midlands, Greater Manchester, Hertfordshire and Essex, central and east Scotland, and south-west and south-east Wales. In addition to the training and job placements, 900,000 young people will receive a dedicated work support session to guide them toward employment.
Former Health Secretary Alan Milburn has been tasked with reviewing the rising number of Neets to inform further reforms to health and welfare. McFadden explained on BBC’s Sunday with Laura Kuenssberg that the issue is “an international problem, partly impacted by technology, partly impacted by post-Covid factors.” He stressed the need for a “better response to anxiety than just giving people benefits,” arguing that government spending should focus on changing lives rather than “just keeping body and soul together.”
But the opposition has not held back. Conservative shadow work and pensions secretary Helen Whately criticized the government’s tax hikes, claiming they are “driving up youth unemployment, snatching a career from a generation of young people.” She went further, saying, “This scheme is nothing more than taking with one hand to give with the other. This is an admission that the Government has no plan for growth, no plan to create real jobs, and no way of measuring whether any of this money delivers results.” Whately also questioned the lack of clarity on what the roles would be, who the employers are, and whether these jobs would survive once the funding ends.
For many in the hospitality and retail sectors, the government’s plan feels like a double-edged sword. While there is enthusiasm for initiatives that support youth employment, leaders are wary of the mounting pressures on businesses, from rising wage costs to increased regulatory burdens. “Right now, it feels like giving with one hand and taking away with the other,” said Michael Kill, reflecting the sector’s anxiety about its ability to absorb new workers amid closures and cutbacks.
As the government prepares to publish its national youth strategy in the coming week, the debate over how best to support young people into meaningful, stable employment continues. The challenge is clear: crafting a system that not only offers opportunities but also ensures that the jobs available are secure, fairly paid, and provide real prospects for advancement. With so many young people at a crossroads, the stakes could hardly be higher.
Whether this new investment will truly change the story for Britain’s young people—or simply shuffle them between schemes and sanctions—remains to be seen. For now, the government’s message is one of both hope and expectation: take the chance, seize the opportunity, and help shape the future of the country.
