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Businesses will be given a £3,000 government bonus for hiring a young person who has been out of work for six months.
Work and Pensions Secretary Pat McFadden said the government wants to “back Britain’s young people” after youth unemployment hit its highest levels for 11 years.
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The latest government statistics show there were 729,000 people aged 16-24 not in a job from September to November 2025 – 15.9% of young people, up from 14.4% in the year before – meaning 103,000 more not in work this year.
There were 946,000 young people not in employment, education or training (12.7% of all 16 to 24-year-olds), the latest data from July to September 2025 shows.
But Mr McFadden insisted to Mornings with Ridge and Frost that youth unemployment was not because of Labour’s policies, as it is a “long-term problem” and not enough has been done about it for the past 15 years.
He announced:
• A £3,000 bonus for firms that hire a young person who has been out of work for six months
• Small and medium-sized businesses will get a £2,000 bonus if they take on a young apprentice
• Jobs with training subsidised by the state to be expanded to 22 to 24-year-olds.
Mr McFadden said: “They’re in a difficult labour market, it’s been a difficult labour market for them for some time.
“But with these actions, we want to tell young people and to the businesses thinking of hiring them, that we’ve got to create a better future for young people.
“We cannot have a million young people not in education, employment or training. It’s not good for them. It’s not good for the country either.”
Many…
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