UK Government Launches Six-Month Subsidised Job Placements for Young Universal Credit Claimants
The UK government has announced a new policy requiring 18- to 21-year-olds on universal credit, who have been unemployed and seeking work for 18 months, to accept a six-month, taxpayer-funded job placement to retain benefit eligibility. If youths refuse these placements without a good reason, they will lose the right to claim benefits.
The scheme will provide 55,000 six-month roles, fully subsidised for 25 hours per week, paid at the legal minimum wage. These placements will be funded from an £820 million budget pot through 2029. The rollout is set to begin in spring 2026 across six UK regions with high youth unemployment: Birmingham and Solihull; East Midlands; Greater Manchester; Hertfordshire and Essex; Central and Eastern Scotland; and South-west and south-eastern Wales.
In its first year, the government anticipates more than 1,000 young people will start a job within the first six months of the scheme.
Additionally, as part of the wider support pathway, approximately 900,000 universal credit jobseekers will receive a dedicated work support session, followed by four weeks of intensive support. An employment coach will then refer them to one of six pathways, which include options such as work, work experience, apprenticeship, wider training, learning, or a workplace training programme.
