Job Loss vs. 'Guaranteed Job': Youth Unemployment Scheme Ignites Debate Over Tax Hikes and Employer Costs

December 07, 2025 12:20 AM
Benefit Blitz: Government’s 'Guaranteed Job' Scheme Meets Fierce Skepticism Over Cost-of-Living Crisis

In a dramatic move aimed at tackling the burgeoning youth unemployment crisis, the government has unveiled an £820 million package promising a "guaranteed" job to thousands of young people, alongside mandatory work experience or training for others. This ambitious effort comes as official figures show nearly one million young people—specifically 946,000 aged 16 to 24, or NEETs (Not in Education, Employment, or Training)—are currently without constructive engagement, Daily Dazzling Dawn understands.

Work and Pensions Secretary Pat McFadden championed the initiative, stating, "Every young person deserves a fair chance to succeed. When given the right support and opportunities, they will grasp them." He confirmed the introduction of a range of reforms to help young people take that "vital step" into the workplace.

The core of the plan focuses on 55,000 young people residing in designated unemployment hotspots, who will be offered a "government-backed guaranteed job" in sectors like construction, health and social care, and hospitality. Initially rolling out in areas including Birmingham, Greater Manchester, and parts of Scotland and South Wales, the department expects over a thousand young people to start a job within the first six months. Additionally, 350,000 other young individuals will receive six weeks of training and work experience, which includes a guaranteed job interview, intended to boost confidence and enhance CVs.

The Sanction Sticking Point and Fiscal Backlash-However, the initiative carries a punitive edge. The Department for Work and Pensions stated there is an "expectation" that young people will accept the offered opportunities, warning that "sanctions to benefits could be applied" for those who refuse. This requirement has immediately drawn fire from those who believe the government's own fiscal policies are the root cause of the job shortage.

One job seeker, identified as Mr Adam, articulated the public frustration, questioning the sustainability of the plan: "Just where are all these guaranteed jobs coming from? After the Budget that hit employers with NI there have been millions more jobs lost than opened up. And any job out there pays pennies and can't pay the bills even if you get three or four jobs."

A similar sentiment was echoed by another commentator, who argued the government is fundamentally misdiagnosing the problem. "Lower the National Insurance contributions for employers so that maybe employers can then increase jobs for people. Where are you going to find 1 Million Jobs for young people! Employers are hardly hiring due to the high cost of employing workers."

A third individual summarized the stark view held by many: "This government have obviously failed, or decided to ignore, the fact that they have caused the loss of thousands of jobs both present and future with their fiscal decisions."

A Crisis of Rising Sickness and Business Costs-The Opposition was quick to pounce on the new package, framing it as an admission of failure. The Conservative Party has accused the current government of exacerbating the youth jobs crisis by increasing National Insurance contributions for employers and mandating above-inflation increases in the minimum wage for 18-to-20-year-olds, driving up the cost of staff.

Helen Whately MP, Shadow Secretary of State for Work and Pensions, slammed the move as "taking with one hand to give with the other," arguing, "The Chancellor's tax hikes are driving up youth unemployment, snatching a career from a generation of young people." She dismissed the scheme as "nothing more than an admission that the Government has no plan for growth, no plan to create real jobs," noting the lack of detail on the roles, employers, or the longevity of the positions once government funding concludes.

The unemployment figures themselves underscore a worrying trend: the number of NEETs has risen by 195,000 in the last two years, a surge driven primarily by increasing rates of sickness and disability. Think tank the Resolution Foundation warned the figure is on course to breach one million, a level not seen since the financial crisis peak in 2012.

In an effort to provide broader support, Mr McFadden also announced the expansion of Youth Hubs across the country, which offer comprehensive CV advice, skills training, and mental health and housing support. Furthermore, the government is working on a National Youth Strategy, informed by a review being led by former health secretary Alan Milburn, to address the rising NEET numbers and shape further reforms to health and welfare policy.