Young people to lose benefits if they turn down work, says minister

Young people who turn down government-backed guaranteed jobs could be at risk of losing their benefits, a UK minister has warned.

Westminster announced a UK jobs guarantee scheme, which will be launched in areas with some of the highest need from Spring 2026, including central and east Scotland.

The guaranteed jobs will be offered to 18–21-year-olds who have been searching for work while in receipt of Universal Credit for 18 months. It will provide six months of 25 hours a week of fully subsidised paid work.

The Department for Work and Pensions has said there is an “expectation” that young people will take up the opportunities they are offered.

If they do not, the Government said “sanctions to benefits could be applied for those who don’t engage with the offered support without good reason”.

Scottish secretary Douglas Alexander said the investment will ensure young people across Scotland “have real pathways into work”.

“Central and East Scotland is one of six areas where the Jobs Guarantee will roll out from Spring 2026 because we know the talent is there – what’s been missing is the opportunity,” Alexander said.

“This is about backing Scotland’s young people with the support, training and guaranteed employment they need to build careers, not just find jobs.

“As part of this training, young people will receive six weeks of training, work experience, and a guaranteed job interview, giving young people their first foot in the door towards meaningful employment, boosting their prospects and supporting a stronger economy as part of our Plan for Change.”

Across the UK, 55,000 young people stand to gain from the government-backed guaranteed job, and more than 1,000 young people are expected to start a job in the first six months alone.

It comes as approximately 1 in 8 young people aged 16-24 (12.8%) are unemployed in Scotland.

Data shows that almost one million young people across the UK are not in education, employment, or training – a 26% increase from pre-pandemic levels.

The jobs guarantee is part of the UK Government’s major £820m funding package over the next three years to reverse this trend and ensure “no young person is left behind”.

“Every young person deserves a fair chance to succeed. When given the right support and opportunities, they will grasp them,” UK work and pensions secretary Pat McFadden, said.

“That’s why we are introducing a range of reforms to help young people take that vital step into the workplace or training and to go on and make something of their lives.

“This funding is a down payment 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.”

In total, the government plans to create 350,000 training and work experience placements designed to support young people into employment in sectors including construction, health and social care and hospitality.

Youth Hubs offering CV advice, skills training, mental health support, housing advice, and careers guidance will also be expanded to every local area of Great Britain, bringing the total to over 360.

The Scottish secretary added: “From the Central Belt to our island communities, too many young Scots have been let down over recent years by a lack of opportunity.

“This £820m investment will ensure that young people across Scotland have real pathways into work, whether that’s in our growing renewables sector, in construction trades that are crying out for skilled workers, or in hospitality.”

Although youth policy is devolved in Scotland, the youth guarantee and jobs guarantee are UK-wide policies. It will work alongside devolved provision in Scotland, including support from Skills Development Scotland.