DWP paying businesses £3,000 to hire young people amid youth unemployment surge

Patrick O'Donnell
Sat, 02 May 2026 11:33:36 +0000

The Department for Work and Pensions (DWP) offering a substantial new financial incentive for businesses willing to take on young jobseekers, with grants reaching £3,000 available to employers.

As part of the the Youth Jobs Grant, companies are recruiting individuals aged 18 to 24 who have been claiming Universal Credit for more than half a year.

DWP minister Andrew Western confirmed the initiative in a recent written parliamentary response, stating: "The Government is taking action to support employers to recruit and train young people, helping to unlock up to 200,000 more employment opportunities."

This scheme forms part of enhanced funding for the Youth Guarantee and Growth and Skills Levy programmes.

The Labour Government's support package extends beyond the Youth Jobs Grant with additional measures aimed at boosting youth employment.

Small and medium-sized businesses can access a separate £2,000 incentive when taking on apprentices between 16 and 24 years old.

Mr Western outlined a third element of the strategy: "The Jobs Guarantee scheme, providing long-term unemployed 18 to 24-year-olds with a fully funded six month job."

Ministers have pledged to assist one million young people through these combined initiatives whilst creating 500,000 training and employment opportunities.

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Healthcare technology firm Cera is among the businesses expanding its workforce in response to the Labour Government's employment push.

The at-home care provider, which uses artificial intelligence to enhance its services, has announced plans to establish 5,000 new roles within the coming year.

Additionally, the company intends to provide digital and AI skills training to over 20,000 workers, both new recruits and existing staff, throughout 2026.

Cera has developed an AI-powered tool named Ami that assists applicants through the recruitment process, accelerating their journey into employment.

The firm is specifically focusing on hiring people over 50 and young people aged 18 to 24 who are currently outside employment, education or training.

Employment Minister Dame Diana Johnson commended Cera's approach to job creation, stating: "Our mission is to get Britain working - and that means embracing the technologies that can help people into meaningful, fulfilling careers. Initiatives like this show how AI can be used as a key tool for businesses unlocking productivity and helping employers to create and fill the jobs that will drive our economy forward."

Cera's founder and chief executive, Dr Ben Maruthappu, emphasised the long-term significance of supporting young workers.

He said: "Today's 18-24s will make up the backbone, not just of our future economy but also of our future health and care workforce."