Government’s Jobs Guarantee Aims to Turn Youth Unemployment into Paid Work

The UK Government’s Jobs Guarantee funds up to 25 hours a week at the National Minimum Wage for six months for 18- to 24-year-olds on Universal Credit for at least 18 months. Employers such as Boots, John Lewis, OCS and a range of SMEs receive Treasury reimbursements for wages and pension contributions. The first cohort is working in retail, warehouse and administrative roles at Boots’s Nottingham headquarters and similar placements across Wales, the East Midlands, Greater Manchester, Hertfordshire, Essex, Central and East Scotland, and South-East and South-West Wales. After six months placements are not guaranteed, but participants receive support—including confidence-building and on-the-job skills training—to improve their chances of permanent employment.

Government's Jobs Guarantee turns promise into paycheques for young people

Youth unemployment has risen sharply since the COVID-19 pandemic. The number of young people not in education, employment or training (NEET) topped one million for the first time since 2014 and is projected to reach 1.25 million by 2030 without intervention, according to a review led by former minister Alan Milburn. Department for Work and Pensions data estimate that roughly a quarter of NEETs—about 250,000 individuals—report mental-health conditions such as depression, anxiety, ADHD, or autism. The Jobs Guarantee is presented as both an economic and a mental-health response, aiming to replace prolonged isolation with paid work and routine.

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• Target: 90,000 fully funded placements by 2029, part of a £2.5 billion youth-employment investment.

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• Funding: Up to 25 hours/week at the minimum wage plus pension contributions for six months per participant.

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• Geographic rollout: Initial pilots in six regions—Birmingham & Solihull, the East Midlands, Greater Manchester, Hertfordshire & Essex, Central & East Scotland, South-East & South-West Wales—expanding nationwide by November.

Government's Jobs Guarantee turns promise into paycheques for young people

• Employer participation: Boots, John Lewis (post-tax profit £261 m), OCS and more than 400 firms have signed up.

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Stephen Kinnock, Secretary of State for Wales, described the rollout as a “vote of confidence” in Welsh youth, highlighting the scheme’s role in building confidence and skills. Anthony Hemmerdinger, Managing Director of Boots UK and Ireland, noted the company’s commitment to creating placement opportunities and its belief that retail can develop the confidence and experience needed for long-term careers.

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• “We do want to get a benefit bill down, but we want to do it by putting work and opportunity at the heart of what we’re doing,” — Pat McFadden, pensions secretary

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• “Today's announcement is a vote of confidence in young people in Wales.” — Stephen Kinnock, secretary of state for Wales

South Wales Argus

• “Anthony Hemmerdinger, managing director of Boots UK and Ireland, said: "We're pleased to create opportunities for young people to secure work placements in our stores, offices, and warehouses through the Jobs Guarantee.” — Anthony Hemmerdinger, Managing Director of Boots UK and Ireland

South Wales Argus

Boots staff in Nottingham reported that newly hired participants are engaged in packing, labeling and customer-service tasks. The young workers, many of whom have been job-searching for up to four years, say the placements have already boosted their confidence and sense of routine. Similar feedback has emerged from Wales, where participants describe a shift from “isolation” to a structured workday, noting improvements in self-belief and daily discipline.

Government's Jobs Guarantee turns promise into paycheques for young people

The scheme will open to all eligible 18- to 24-year-olds on universal credit by November, extending beyond the pilot regions. The Youth Voice Census data scheduled for release on 10 September will provide further insight into young people’s attitudes toward paid work experience. Ongoing monitoring will track conversion of six-month placements into permanent jobs and assess the scheme’s impact on youth unemployment and associated mental-health outcomes.

Government's Jobs Guarantee turns promise into paycheques for young people