Birmingham Edgbaston young people set to benefit from £1bn jobs drive creating 200,000 opportunities

Young people in Birmingham Edgbaston are set to benefit from a major £1 billion Government employment drive aimed at tackling rising youth unemployment and creating more than 200,000 jobs and apprenticeships nationwide.

The plan comes as nearly one million young people across the UK are currently not in education, employment or training (NEET) an increase of 248,000 since 2021 while apprenticeship starts among young people have fallen by 40% over the past decade.

The new package, described as a “New Deal for young people”, will expand opportunities for those aged 16–24, with a particular focus on helping those struggling to get into work.

At the heart of the reforms is a new Youth Jobs Grant, which will give employers £3,000 for every young person aged 18–24 they hire who has been on Universal Credit and looking for work for six months. This is expected to support 60,000 young people over the next three years.

The Government will also expand its Jobs Guarantee scheme from ages 18–21 to 18–24, creating more than 35,000 additional subsidised roles and bringing the total number of jobs supported through the programme to over 90,000.

For younger people starting out, new foundation apprenticeships in hospitality and retail will be introduced from April 2026, alongside a £2,000 incentive for small and medium-sized businesses to take on apprentices aged 16–24. The reforms aim to deliver 50,000 more apprenticeships as part of the biggest shake up of the system in a decade.

The measures form part of a wider £2.5 billion investment in the Youth Guarantee and skills system over the next three years, expected to support almost one million young people and create up to 500,000 opportunities to earn or learn.

In Birmingham, where youth unemployment and skills gaps remain a key challenge, the reforms are expected to open up new routes into work particularly in sectors such as construction, engineering, clean energy and digital industries.

Preet Kaur Gill MP said:

“For too long, too many young people in Edgbaston have been held back without the opportunities they deserve.

This investment will open doors from jobs to apprenticeships helping young people build a future and get on in life.

The Youth Guarantee is about making sure no young person is left behind and that everyone has the chance to earn or learn.”

Prime Minister Keir Starmer said:

“Backing young people is one of the most important investments we can make in this country’s future.

We are determined to tackle the rise in youth unemployment by expanding practical routes into work, boosting apprenticeships, and giving employers the clarity they need.

These reforms underpin our ambition to create an economy that works for everyone, closing the skills gap and supporting more young people into meaningful employment.”

Work and Pensions Secretary Pat McFadden added:

“These measures will give life-changing opportunities to young people and significantly reverse the increase we inherited in those not in education, employment or training.

We are focusing funding where it’s needed most and giving employers the flexibility and support they’ve asked for.

These reforms will give young people a vital first step on the career ladder and help business leaders recruit the talent that will grow their companies.”

The reforms are backed by Tom Kerridge, who has trained dozens of apprentices in his own businesses.

Tom commented:

“I welcome this announcement which will provide amazing opportunities to young people looking to get into this industry and others, to learn a trade and earn along the way.

I’ve trained apprentices in my restaurants, and I know what a great start it gives them in their careers, and these incentives will give our industry a great boost.”

As part of the changes, the Government is also launching new apprenticeship routes aligned with key growth sectors, including artificial intelligence, where a new Level 4 AI and automation apprenticeship will train workers to use emerging technologies safely and effectively.

From Autumn 2026, eligible young people aged 18–24 who have been on Universal Credit and out of work for 18 months will be guaranteed a six-month job, working 25 hours a week on at least the minimum wage, alongside training and support.

The announcement is expected to be a key part of the Government’s wider plan to tackle the cost of living, boost skills and ensure more young people in places like Birmingham can access secure, well-paid work.