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Funding for Businesses Who Give Youngsters a Chance as Government Ramps up Youth Jobs Drive


. 29th June 2026

  • From 30th June 2026, employers can claim £3,000 if they take on an eligible young person who has been out of work for six months
  • Attractions giant Merlin Entertainments – which is also participating in the Government’s Great British Summer Savings scheme – is one of the first major backers of the grant and will offer 300 jobs for young people as part of the Youth Guarantee
  • This comes as almost one million young people will benefit from more intensive, tailored support in jobcentres
  • Businesses who take on jobless youngsters will be offered thousands of pounds in the latest boost to youth employment support

    From Tuesday 30 June 2026 businesses can access the new Youth Jobs Grant, which will pay £3,000 for every eligible young person they hire – helping thousands more young people take their first step on the career ladder. It is a major investment in the next generation, helping up to 60,000 people aged 18 to 24 take their first steps into work over the next three years.

    The grant is being introduced as the government reinforces its commitment to tackling youth unemployment by rolling out intensive support in jobcentres for almost a million young people across the country.

    Ahead of the launch, the Prime Minister and Work and Pensions Secretary Pat McFadden will today host a roundtable in Downing Street, with hospitality businesses supporting the scheme.

    To apply for the Youth Jobs Grant, employers simply complete a straightforward online application here and will receive funding in two instalments once employment and earnings have been verified by DWP.

    UK-based attractions powerhouse Merlin Entertainments – which operates over 20 UK destinations, including LEGOLAND Windsor, Chessington World of Adventures, Alton Towers and London’s SEA LIFE Aquarium – has confirmed its support for the scheme and has become the latest major employer to throw its weight behind the Youth Guarantee by committing to create 300 jobs for young people over the next three years.

    From hospitality and guest experience to technology and marketing, the opportunities are supported by both the Jobs Guarantee and the Youth Jobs Grant and will help young people gain the skills and experience they need to take first steps into lasting careers. Merlin will also use the Growth & Skills Levy to open up more apprenticeship routes through its Engineering Academy, giving the next generation of technicians the training they need to operate and maintain its world-class rides and experiences.

    Many of the 300 roles at Merlin will be through the Jobs Guarantee, which has launched in six areas – offering a fully-subsidised job for six months for young people who’ve been out of work for at least 18 months and will receive wraparound support.

    HAE EHA Public Affairs Director Mark Bradshaw said:

    “Recruiting the next generation of people to work in the hire sector is a key topic for HAE EHA and this latest Government initiative may be of interest to some of our members.

    “Starting on Tuesday 30th June 2026, businesses can access the new Youth Jobs Grant which will pay £3,000 for every eligible young person they employ.

    “Ministers see this as a major investment in the next generation, helping up to 60,000 people aged 18 to 24 take their first steps into work over the next three years. Members interested in accessing the grant should use the online application process directly with DWP.”

    Prime Minister Keir Starmer said:

    “We often say in this country that every child or young person should go as far as their talents will take them. But too often they are held back by a status quo that doesn’t work for them.

    “We are turning the page on that, putting in place the building blocks of real reform to expand opportunity for young people and helping them into work.

    “This is the foundation for a new contract with the next generation, so every young person has a clear path into learning or earning, and the chance to build a secure and successful future.”

    Work and Pensions Secretary Pat McFadden said:

    “Young people want the chance to work, earn, learn and build a better future.

    “That’s why the Government is backing employers large and small with a £3,000 grant to take a chance on young people who are ready to work and need that first step on the ladder, and subsidised work for those who face more challenges.

    “Working with employers, we can turn young people’s lives around and that’s why I’m delighted to see Merlin’s commitment to create 300 roles, and I urge others to join our Youth Guarantee.”

    Additional Information

    Expanded jobcentre support
    • Eligibility: Young people aged 16 to 24 who are making a new Universal Credit claim and placed in the Intensive Work Search (IWS), Work Focused Interview (WFI), or Work Preparation regimes. Participation in the support is mandatory for those in the IWS regime but is also available voluntarily for individuals in WFI or Work Preparation regimes
    • The expanded support was initially launched in April across 81 sites across Great Britain. From Monday 29th June, it will be available at every Jobcentre.
    • What is new about this support? We are giving young people more time with work coaches and are bringing more local work and training opportunities into jobcentres by actively working with employers and training providers. We will be working with each eligible young person to identify which opportunity is right from them. Alongside opportunity comes responsibility on the young person to take up those opportunities. Specific changes to the jobcentre support includes:
    • A reframed Employment and Skills Review at Week 2 with a stronger focus on skills
    • Weekly appointments with an increased focus on personal support to address barriers to work
    • A dedicated Youth Guarantee Gateway meeting at week 13, followed by 4 additional weeks of intensive help to ensure young people take up work, training or learning opportunities. During this period, they will receive tailored guidance and be offered up to six options (which could be: work, work experience, Sector-based Work Academy Programme (SWAP), apprenticeship, training or learning) to help them progress into employment. This action will form part of their agreed plan, setting out how they will meet their legal requirement to prepare for and move into work.
    • Youth Jobs Grant
      • The Youth Jobs Grant is worth £3,000 for every young person a business hires aged 18 to 24 who has been on UC and looking for work for six months. The first payment of £1,800 is made after six weeks, followed by a second payment of £1,200 after 18 weeks, provided grant conditions are met
      • To apply for the Youth Jobs Grant, employers simply complete a straightforward online application, where employers will be asked to accept a short set of terms and conditions as part of the application. An eligible young person will be identified by the job centre, and if hired, the employer will receive funding in two instalments once employment and earnings have been verified by DWP. Verification will take place within 10 working days.
      • Jobs Guarantee:
        • The Jobs Guarantee is a central part of the Youth Guarantee, supporting young people to take the crucial first step into sustained employment where earlier support and opportunities may have not worked.
        • Under the scheme eligible young people aged 18 to 24 who have been claiming Universal Credit and looking for work for 18 months will be guaranteed a 6 month fully funded job. The Government will fund 100% of employment costs for up to 25 hours a week at the relevant minimum wage, alongside tailored employability support to help participants succeed in their role and progress into sustained employment.
        • Our first phase of the Jobs Guarantee launched in April 2026 across six areas; Birmingham and Solihull, East Midlands, Greater Manchester, Hertfordshire and Essex, Central and East Scotland, Southwest and Southeast Wales allowing us to test the model.
        • Full DWP press release

          View the complete article, including contributions from ministers and key industry spokespeople.

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