Work placements for young people on long-term benefits - help or hard line?

11th October 2025

The UK government's new plan to offer paid work placements to young people who've been on long-term benefits has sparked both praise and concern.

Ministers say the policy will help thousands back into work. Critics say it risks punishing those who need more support, not sanctions.

What's being proposed

Under the new scheme, any young person aged 18-21 who has been claiming Universal Credit for 18 months without being in work, training or education will be guaranteed a paid work placement.

Those who refuse a suitable offer without a "reasonable excuse" could lose benefits. The government says the aim is to give every young person "a fair start" and stop the drift into long-term unemployment.

The policy is part of a wider "Youth Guarantee", which also includes access to apprenticeships, college places and training schemes.

Supporters: tackling a cycle of inactivity

Supporters argue the scheme addresses a growing national problem — youth inactivity. More than one in eight young people in the UK are now classed as NEET (not in education, employment or training). Once someone is out of work for over a year, their chances of returning drop sharply.

Economists from the Institute for Fiscal Studies (IFS) say long-term unemployment in early adulthood can cause “scarring effects” on earnings and wellbeing that last for years. Work placements, if well designed, could give young people vital experience, structure, and confidence.

Crucially, the placements will be paid, unlike some previous workfare-style schemes. This makes the initiative more equitable and may encourage greater take-up.

The Youth Futures Foundation, a charity focused on youth employment, welcomed the plan as “a positive step” that could help reconnect young people to the labour market — if it comes with proper guidance and mentoring.

Critics: risks of coercion and poor quality

But others warn that the policy could backfire if it focuses more on enforcement than opportunity.

Welfare campaigners point out that many young people on long-term benefits have complex barriers — including poor mental health, unstable housing, or caring responsibilities. If these aren’t addressed, forcing them into placements could do more harm than good.

The risk of sanctions has also raised concerns. Charities fear that young people could lose benefits for reasons beyond their control, especially if “reasonable excuse” isn’t clearly defined.

There are also questions about the quality of placements. Critics cite the example of the pandemic-era Kickstart Scheme, which placed thousands of young people in short-term jobs, but many did not lead to lasting employment. Without strong employer engagement and post-placement support, history could repeat itself.

A question of design

Most experts agree the principle is sound. Young people deserve opportunities, not dead ends. But success will depend on how the scheme is implemented.

If placements are meaningful, supported, and genuinely lead to jobs or training, the programme could make a real difference. If not, it risks becoming another revolving door — with young people moving in and out of short-term schemes without long-term progress.

As one youth employment advocate put it, “The question isn’t whether young people should be helped into work — it’s whether we’ll give them the right kind of help.”

By the Numbers

1 in 8 young people (16-24) in the UK are NEET — not in education, employment or training.

Around 300,000 young people have been out of work for over a year.

The number of young people with mental health conditions has tripled in the past decade.

Government estimates suggest the scheme could reach tens of thousands of young people each year.

The Big Questions

Will placements lead to real jobs or just short-term fixes?

How will “reasonable excuse” be defined for those unable to take part?

Can employers be persuaded to offer meaningful opportunities — not just cheap labour?