The DWP is also offering grants up to £3,000
Universal Credit claimants may be entitled to some extra support and payments. The DWP has released an update regarding a grants scheme designed to assist claimants, as part of a wider package of reforms.
The Government issued the update in response to a written question from an MP. Liberal Democrat representative Dr Al Pinkerton asked ministers what assistance is available to help young people into employment.
DWP minister Andrew Western provided the Government’s response. He set out what support is on the way to help young people into work. The minister said: “Building on the Youth Guarantee and Growth and Skills Levy announcement at Budget, the Government committed a further £1billion for young people on 16th March 2026, taking total additional investment into the Youth Guarantee and the Growth and Skills Levy to £2.5billion over the next three years.
“This investment will support almost one million young people and create up to 500,000 opportunities to earn and learn.” He shared some details of a grant scheme designed to assist employers in taking on and upskilling younger workers.
New grants available
The minister said: “The Government is taking action to support employers to recruit and train young people, helping to unlock up to 200,000 more employment opportunities. This includes a new £3,000 Youth Jobs Grant for employers who hire 18 to 24-year-olds who have been on Universal Credit for over six months, a new £2,000 apprenticeship incentive for small and medium sized employers hiring 16 to 24-year-old, and the Jobs Guarantee scheme, providing long-term unemployed 18 to 24-year-olds with a fully funded six month job.”
A previous Government report indicated these grants could benefit around 60,000 young people over a three-year period. The DWP has also announced that from autumn 2026, the Jobs Guarantee will be extended to all eligible 18 to 24-year-olds who are claiming Universal Credit and have been seeking employment for 18 months.
Government guidance states: “They will benefit from 25 hours/week of fully subsidised six-month paid work. Young people on the scheme will be paid at the relevant minimum wage and also receive fully funded wrap around support.”
The minimum wage for those aged 18 to 20 currently stands at £10.85 per hour, or £12.71 for anyone aged 21 and above. At these rates, an 18 to 20 year old working 25 hours a week would take home £271.25 weekly, or £7,052.50 across six months. Someone aged 21 or over would earn £317.75 a week, or £8,261.50 over the same period.
Expanded support
Mr Western spoke about what other support is being brought in as part of the same package of reforms. He said: “The Government is delivering 8 Youth Guarantee Trailblazers in England, expanding Youth Hubs to more than 360 areas across Great Britain and introducing a new Youth Guarantee Gateway in Jobcentres.
“The Gateway will provide 16 to 24-year-olds on Universal Credit a dedicated session and follow-up support to help them move into work, training or education.” Further plans are also in place to bolster support in schools.
This includes widening access to work experience opportunities, as well as plans to work with local authorities to automatically enrol students into further education.
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