UK Launches £1 Billion Youth Jobs Scheme with £3,000 Hiring Grants

The UK government has unveiled a £1 billion package to tackle youth unemployment, including a new Youth Jobs Grant that provides £3,000 to businesses for hiring 18-24 year olds who have been on Universal Credit for six months or more. Chancellor Pat McFadden announced the expansion of the Jobs Guarantee programme to include 22-24 year olds, with the measures expected to create over 35,000 subsidised jobs and benefit more than 60,000 young Scots over three years. The initiative comes as youth unemployment reached 15.9% in late 2025, with nearly one million young people not in education, employment, or training. The government also announced changes to employment rights, reducing the qualifying period for unfair dismissal claims from two years to six months.