Announced over the weekend, the scheme is expected to create around 350,000 “employment opportunities”, focusing on on-the-job skills, employer networks, and CV and interview coaching.
Named Plan for Change, the fund will include 55,000 government-backed guaranteed jobs in sectors including hospitality, construction and health care, set to roll out from 2026 in areas of high need such as Birmingham and Solihull, East Midlands, Greater Manchester, Hertfordshire and Essex, Central and East Scotland, and Southwest and Southeast Wales.
The programme aims to tackle the rising number of young people not in education, employment, or training—currently almost one million, a 26% increase since before the pandemic.
“Every young person deserves a fair chance to succeed,” says Work and Pensions Secretary Pat McFadden. “When given the right support and opportunities, they will grasp them.
“That’s why we are introducing a range of reforms to help young people take that vital step into the workplace or training and go on to build a future. This funding is a downpayment on young people’s futures and the future of the country, creating real pathways into good jobs and providing work experience, skills training, and guaranteed employment.”
However, the Night Time Industries Association (NTIA) has warned that more must be done to support hospitality businesses, which face mounting costs and pressures.
“The Government’s announcement of £800 million to tackle youth unemployment risks missing the point entirely if the businesses that create jobs are being priced out of existence,” says Micheal Kill, chief executive of the NTIA. “You cannot subsidise people into jobs that no longer exist.
“As one of the biggest employers of young people, we are keen to support efforts to get them into work. But right now, it feels like giving with one hand and taking away with the other.”
Across hospitality, nightlife, and the wider visitor economy, businesses are grappling with rising wages, higher taxes, increased regulatory burdens, and mounting operational costs. According to the NTIA, this has already led to thousands of job losses, reduced hours, and business closures.
“Announcing large funding pots may generate headlines, but it does not address the structural reality: when businesses are struggling to survive, they cannot hire, train, or grow. Jobs are created by thriving enterprises, not government schemes.”