Nearly one million young people in the UK are currently not in education, employment or training. That’s not just a national headline, it’s a real problem playing out in communities across the country, including right here in the North East.
At We Are Zenith, recruitment and training isn’t just what we do, it’s why we exist. So when the government launched the Youth Guarantee, we paid attention.
Here’s what it is, why it matters, and what it could mean for you.
The scale of the problem
The numbers are stark. 1 in 8 young people are classed as NEETs (not in education, employment or training), and in 2026, 6 in 10 of those have never worked at all, up from 4 in 10 just a year ago. The annual cost to the economy sits at around £125 billion.
At the same time, employers are still struggling to find and keep good people. That disconnect is exactly what the Youth Guarantee is designed to close.
What the Youth Guarantee actually offers employers
The government has put real money behind this. If you’re an employer, here’s what’s available to you right now:
A Jobs Grant of £3,000 is available for hiring eligible 18-24 year olds who have been on Universal Credit and unemployed for over six months. That payment is spread over the first three months of employment, and the young person will have received workplace skills training during their time out of work, so they’re arriving better prepared.
For apprenticeships, there’s £1,000 for hiring apprentices aged 16-18, £2,000 for SMEs taking on apprentices aged 16-24, and £2,000 for employers hiring foundation apprentices aged 16-21. From August 2026, apprenticeship training for eligible 16-24 year olds in SMEs will be fully funded. On top of that, there are no National Insurance contributions on employees under 21 or apprentices under 25 (up to £50,270).
The Jobs Guarantee goes a step further. Phase one launched in April 2026 across six regions, offering eligible 18-24 year olds a fully funded six-month role (25 hours per week) with wraparound support. A national rollout is coming later this year, with 90,000 placements planned over the next three years.
There’s also Work Experience (1-8 weeks, benefits-protected, with travel covered by the Jobcentre) and SWAP, a Sector-based Work Academy Programme offering up to six weeks of fully funded training, work experience, and a guaranteed interview tied to a real job.
All of these routes require a solid relationship with your local Jobcentre. That’s where candidates come from, and it’s worth building those connections now.
Don't underestimate work experience
It’s also worth recognising the role that work experience plays in all of this.
Before apprenticeships, jobs and careers, many young people simply need an opportunity to experience the workplace for the first time. To see what work looks like, build confidence, ask questions, and start understanding where their interests and strengths might lie. For employers, it's a chance to showcase your organisation, challenge perceptions, and help shape future talent. We talk a lot about skills shortages and workforce challenges, but sometimes the most powerful thing a business can do is open its doors and give someone their first opportunity."
What it means for young people
A big piece of context that often gets missed: many of the young people entering the job market right now were at school during COVID. The disruption to their education, their social development, and their confidence hasn’t gone away. It’s showing up as low self-belief, gaps in workplace readiness, and young people who struggle to interpret a job advert or know how to present themselves professionally.
That’s not a character flaw. It’s a circumstance. And it’s why the wraparound support built into the Youth Guarantee matters. Training before employment, structured work experience, skills development alongside job preparation. These aren’t add-ons. They’re what makes the difference between a hire that sticks and one that doesn’t.
Young people also come to work with different expectations. They care about purpose and values, they want to know there’s a development path, they expect flexibility, and they respond quickly to how they’re treated. Employers who understand that will retain them. Those who don’t, won’t.
Behind every statistic, there's a person
It's easy to get lost in the numbers. But every statistic represents a young person who's trying to figure out what's next. Applying for jobs and hearing nothing back. Someone who doesn't quite know where they fit yet, and who simply needs an opportunity.
Most of us can probably remember our own first job, first interview, or first day at work. None of us started with years of experience, a polished CV and all the answers. Someone gave us a chance. And that's really what this is all about.
Whilst funding, grants and programmes are important, confidence matters too. Experience matters. Feeling that somebody believes in you matters.
The Youth Guarantee isn't just about reducing unemployment figures. At its heart, it's about creating more opportunities for young people to gain skills, build confidence, and take that first step into the world of work. And sometimes all it takes is one employer willing to open the door."
What this means for us, and how we can help
At Zenith, we sit right at the heart of this. Through We Recruit, we work with employers every day to find the right people, including young people who are earlier in their careers but absolutely capable of being great hires. Through We Develop, we support apprenticeships and training that give people real, transferable skills. And through We Retain, we help organisations build the kind of environments where people actually want to stay.
The Youth Guarantee doesn’t replace good recruitment and development practice. It funds and supports it. And for employers who are ready to invest in younger talent, the financial incentives are genuinely significant.
If you want to understand what’s available to your business, or you’re thinking about how to bring young people into your team in a way that actually works, we’re here to help you figure that out.
