The government will expand its youth employment scheme nationwide to guarantee jobs for more than 90,000 young people, as ministers seek to tackle Britain’s growing number of people not in education, employment or training (Neets).

The Jobs Guarantee will be rolled out across Great Britain from the end of November, offering eligible 18 to 24-year-olds claiming Universal Credit six months of paid employment, with the government covering wages for up to 25 hours a week.

From April 2027, young people will qualify after 12 months out of work, rather than the current 18, under plans aimed at reducing the number of young people economically inactive.

The government expects the scheme to help more than 90,000 young people into work by March 2029, with over 400 employers, including Lidl, Boots and Leonardo Hotels, already backing the programme.

The expansion comes ahead of a major review by former Labour health secretary Alan Milburn, due on Tuesday, which is expected to recommend fundamental changes to the benefits system amid concerns over almost one million young people being out of work or education.

Welfare shake-up could see benefits cut

Speaking to the BBC’s Sunday With Laura Kuenssberg programme, Milburn warned that some young people would lose benefits under his proposals, but argued that spending should be redirected towards employment opportunities.

“There will be some young people who lose out, of course,” he said. “We’re already spending £22 billion a year keeping young people inactive and on benefits and not in a job.”

Milburn said his proposed reforms would take a decade to deliver, requiring billions of pounds in additional investment before savings from lower welfare spending and higher employment could be realised.

He also called for a legal “opportunity guarantee”, under which the government would have a duty to provide young people with employment, education or training opportunities.

In return, young people would be expected to take up those opportunities, with sanctions remaining available for those who refused.

He also proposed allowing young people to keep more of their benefits when entering part-time employment, arguing that the current system penalised those attempting to return to work.

Work and Pensions Secretary Pat McFadden backed the need for a “complete reset of the system”, acknowledging that existing government measures were insufficient.

“I’m not here to say that what we’re doing at the moment is enough,” he told the BBC.

The minister also confirmed that the reforms would include an “element of compulsion”, arguing that the welfare state should offer both financial security and opportunities to work.

The expansion forms part of the government’s £2.5bn youth employment package, which aims to create 500,000 opportunities for young people.

The government is expected to respond to Milburn’s recommendations following the publication of his review on Tuesday