Young people who refuse work will have benefits stripped

Young people receiving Universal Credit who turn down jobs could have their benefits stopped under a new government policy.

The number of young people not working or studying has gone up by 26% since before the pandemic. Right now, almost 1,000,000 people aged 16 to 24 are classed as NEET (not in employment, education or training).

To address this issue, the government has announced an £820 million funding package to create 350,000 new training and workplace opportunities for young people on Universal Credit. The plan is to offer thousands of paid placements and extra support to those who’ve been struggling to get a job.

Work and Pensions Secretary Pat McFadden, said: “Every young person deserves a fair chance to succeed. When given the right support and opportunities, they will grasp them.

“This funding is a downpayment on young people’s futures and the future of the country, creating real pathways into good jobs and providing work experience, skills training and guaranteed employment.”

Officials say this new scheme will give nearly one million young people a better chance to earn and learn through advice or work placements.

How will the scheme work?

The scheme will work as follows:

• Young people on Universal Credit who’ve been looking for work for 18 months will be offered a six-month job placement
• These roles will be fully paid at minimum wage for 25 hours a week
• The jobs will come with training and extra support to help people stay in work

As part of the scheme, young people will also receive six weeks of training as well as a guaranteed job interview to help them get a longer-term position.

If someone refuses a placement without a “good reason”, they could lose their benefits.

Who will be affected?

The scheme is aimed at 18- to 21-year-olds who are on Universal Credit and have been searching for work for a long time.

Where will the jobs be?

The first placements will start in spring 2026 in areas with high youth unemployment, including:

• Birmingham and Solihull
• East Midlands
• Greater Manchester
• Hertfordshire and Essex
• Central and eastern Scotland
• South-west and south-east Wales

What kind of jobs will be on offer?

The roles will be in sectors like construction, health, social care and hospitality, though companies participating have not yet been confirmed.

If you're aged 16-24 and struggling to find work, training, or education opportunities, there is support available. We cover some of the resources available to you in our article on what to do if you're a young person struggling to find work or training.