The initiative comes as the government increases support for young people through Jobcentres across Great Britain. It forms part of a broader youth employment strategy designed to connect people with work, training and learning opportunities. According to the Department for Work and Pensions, the Youth Jobs Grant could help up to 60,000 young people take their first steps into employment over the next three years.
Employers Offered Direct Financial Support for New Hires
From 30 June 2026, employers can claim £3,000 for every eligible young person they hire under the Youth Jobs Grant. The scheme applies to individuals aged 18 to 24 who have been claiming Universal Credit and actively looking for work for at least six months.
According to the DWP, payments will be made in two instalments. Employers will receive £1,800 after six weeks, followed by £1,200 after 18 weeks, provided grant conditions are met and employment details are verified.
The application process is handled online through a DWP system, with jobcentres identifying eligible candidates. Once a young person is hired, funding is released after employment and earnings checks are completed.
Prime Minister Keir Starmer said the programme is intended to expand opportunity for young people who have struggled to access employment. He said many are being held back by a system that does not work for them and described the policy as part of a wider effort to improve access to work and learning.
Work and Pensions Secretary Pat McFadden said the grant is designed to help employers “take a chance on young people” who are ready to work but need an entry point into the labour market.
Major Employers Back Scheme as Jobcentre Support Expands
Large employers have already committed to supporting the programme. Merlin Entertainments is among the first major businesses to back the initiative and has pledged to create 300 jobs over the next three years.
According to government statements, these roles will span hospitality, guest experience, marketing and technology across Merlin’s UK attractions, including LEGOLAND Windsor, Chessington World of Adventures and Alton Towers.
The Youth Jobs Grant sits alongside the government’s separate Jobs Guarantee scheme. That programme offers fully subsidised jobs lasting six months for eligible young people aged 18 to 24 who have been unemployed and claiming Universal Credit for 18 months. Under this scheme, the government covers 100% of employment costs for up to 25 hours per week at the relevant minimum wage.
Support for young people is also being expanded through Jobcentres. From 29 June 2026, enhanced employment support became available across Great Britain. According to the DWP, nearly one million young people over the next three years will receive more structured support, including weekly appointments, skills-focused reviews and dedicated meetings at week 13 of a Universal Credit claim.
Young people will also be offered routes into employment through work experience, apprenticeships, vocational training and further education. The government says this approach is intended to create a clearer pathway into sustained employment for young people who are not currently earning or learning.
