UK hospitality sector to offer up to 100,000 jobs to young people out of work

Three-year scheme for 18 to 24-year-olds follows similar retail initiative ahead of Milburn review into Neet crisis

By LineZotpaper
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Bars, clubs and restaurants across the UK will offer up to 100,000 placements to young people not in employment, education or training (Neet) over the next three years, in a scheme backed by the Department for Work and Pensions and launched ahead of a government-commissioned review warning the Neet population could reach 1.25 million.

The initiative, to be launched by Andy Burnham during a visit to a hospitality venue on Thursday, will involve restaurant chains including Wagamama, Nando's and Burger King, hotel chain Premier Inn, and pub chains Fuller's and Mitchells & Butlers. Employers will offer young people aged 18 to 24 placements of up to four weeks to gain "the skills and confidence needed to take their first step into work".

The move follows a similar scheme announced last month by the Department for Work and Pensions (DWP) covering retailers including Marks & Spencer, Asda, Pets at Home and the John Lewis Partnership.

The work and pensions secretary, Pat McFadden, said the scheme would help young people "get their first step on the ladder" and build their careers. "With the UK employment rate now the second highest in the G7, this will unlock 100,000 jobs and connect young people with employers ready to take them on and help them build a brighter future," he said.

The announcement comes before the publication of a report on Neets by former health secretary Alan Milburn, who has warned the number of young people not in work or education could rise to 1.25 million within five years unless ministers intervene. His full review, including recommendations to the government, is expected soon after the autumn budget on 28 October.

Separately, the education secretary, Lucy Powell, is expected to announce a review of school exclusion changes after research showed students who are persistently absent from school are nearly four times more likely to end up unemployed and not in education or training. A consultation will gather views on measures to support students at risk of exclusion. Powell said: "Absence and exclusion are too often a path to disengagement, with increased risks of becoming Neet. Too many young people who fall out of education risk being permanently left on the sidelines of work and opportunity."

Milburn has signalled that Britain's benefits system should be overhauled alongside measures to boost job support, training and apprenticeships. Ministers are understood to be considering sweeping welfare changes, including scrapping a critical disability benefit for under-25s and replacing it with a multibillion-pound package of support to get into work. Milburn has previously argued for a national apprenticeship readiness scheme in England, while the chancellor, John Healey, has indicated a readiness to curtail the government's rising benefits bill.

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Analysis

Why This Matters

  • A three-year commitment of 100,000 placements targets 18 to 24-year-olds at risk of long-term disconnection from work, a group that has become a focus of government policy.
  • The initiative lands just before Milburn's review and the autumn budget, where youth unemployment and welfare spending are expected to be central.
  • Linked government proposals could replace a disability benefit for under-25s with work support, directly affecting the incomes and options of young people.

Background

Youth unemployment in the UK has prompted a series of policy responses, including the DWP's retail placement scheme announced last month. Milburn's review was commissioned to examine why young people fall out of education and work and how to reverse the trend. The government points to the UK employment rate being the second highest in the G7, while acknowledging that too many young people are being left behind.

Key Perspectives

Hospitality employers: Chains such as Nando's, Premier Inn and Mitchells & Butlers see short placements as a practical route into work, giving young people skills and confidence while helping venues fill entry-level roles. Government: Ministers frame the scheme as a way to unlock jobs, connect young people with employers and address the root causes of disengagement, including school absence and exclusion. Critics and sceptics: Four-week placements may not guarantee lasting employment, and the proposed overhaul of disability benefits for under-25s has raised concerns about support being withdrawn. The school exclusion review may also take time to translate into classroom changes.

What to Watch

  • The autumn budget on 28 October and the publication of Milburn's recommendations shortly after.
  • Whether the 100,000 placements convert into permanent roles once the placements end.
  • Details of the school exclusion consultation and any welfare changes affecting under-25s.

Sources

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