£820m Boost for NEET Youth: Will Reeves’ New ‘Youth Guarantee’ Finally Deliver Real Jobs for Young People?
Posted on:
The government has unveiled £820 million of new funding to guarantee paid work placements for 18- to 21-year-olds who have been “not earning or learning” for over 18 months. Announced by Chancellor Rachel Reeves in the Budget, the investment will fund a three-year Youth Guarantee scheme offering young people an apprenticeship, accredited training, education, or structured support to find employment.
Latest figures estimate that almost one million young people in England are currently NEET, meaning they are not in education, employment or training. In her Budget speech, Reeves said the funding will “give the young people who were let down by the Conservatives the support and opportunity they deserve.”
⸻
Tackling a Growing Crisis
Youth economic inactivity has become one of the most urgent challenges facing the country. Prolonged periods outside of work or education can have lasting effects on young lives, including:
- Lower confidence and motivation
- Reduced access to secure employment
- Higher long-term reliance on welfare
- Increased risk of homelessness and offending
For many young people, especially those facing complex barriers, the issue isn’t just finding a job — it’s having someone help them build the confidence, skills and support structures needed to sustain a job and a future.
⸻
What the Youth Guarantee Offers
Under the new initiative:
- Young people aged 18–21, on benefits and NEET for at least 18 months, will be guaranteed a paid work placement.
- Employers will be incentivised to create placements through financial support and flexibility around apprenticeship co-investment.
- The funding will run for three years, allowing longer-term planning and real continuity for organisations supporting young people.
The scheme aims to create a systematic pathway back into meaningful work or training — and crucially, a way to rebuild confidence and direction after a long period of inactivity.
⸻
Genuine Futures CIC Responds
Sam Smith, Co-Director of Genuine Futures, welcomed the funding but issued a reminder about delivery on the ground:
“The Youth Guarantee is a step in the right direction. We meet young people every single week who feel left behind. Funding is important, but quality support and meaningful opportunities are what change lives. Too many schemes in the past have ticked boxes without addressing real barriers like confidence, trauma, homelessness and lack of support networks.”
Mike Alleyne, Co-Director of Genuine Futures, emphasised the need for collaboration:
“Paid placements only work if young people are supported before, during and after that opportunity. Mentoring, workplace coaching and safeguarding must sit at the heart of this funding. Social enterprises working directly with young people must be part of delivery.”
Luis, Youth Voice Ambassador at Genuine Futures, offered a candid perspective from experience:
“When you’re out of work for a long time, you don’t just need a job — you need someone to believe in you. I’ve been there. If this scheme gives real support and real workplaces, it will help a lot of young people get on track.”
⸻
Opportunities and Challenges
Potential benefits:
- A guaranteed route back into work or education
- Increased confidence, purpose and employability
- Support for employers and SMEs to take on young talent
Risks and considerations:
- Making sure placements are quality, supportive and properly paid
- Ensuring vulnerable young people get tailored support
- Making funds accessible to smaller local providers, not just national contractors
- Providing wrap-around services such as travel, wellbeing and mentoring
Without these safeguards, the Youth Guarantee risks repeating past initiatives that delivered numbers on paper, but little lasting change in people’s lives.
⸻
A Chance to Build Futures That Shine
The Youth Guarantee recognises the scale of the problem and offers a potential lifeline to thousands of young people who need direction, training and stability. But funding alone isn’t enough. Delivery must be local, human and built on trusted relationships that help young people stay on track when challenges arise.
As Sam Smith put it:
“Young people must be at the centre of planning. We’ve seen how lives change when someone invests time, belief and opportunity in a young person. If this funding supports grassroots work, it could be a game changer.”
As organisations like Genuine Futures continue to build youth-led enterprise hubs, mentoring programmes and training pathways, this new funding could accelerate progress toward a future where no young person is written off or left behind.