Funding more jobs for young ‘will pay for itself’

By the Editorial Team · Tuesday, September 15, 2026

The Trades Union Congress has called for more than doubling the Jobs Guarantee scheme to provide 225,000 state-funded placements for unemployed young people within three years. Economic analysis suggests this expansion would pay for itself within eight years and generate over £4.5 billion in long-term fiscal benefits by boosting tax revenue and reducing welfare and public service costs.

Union leaders have called for a significant expansion of taxpayer-funded job opportunities for young people, arguing that such investment would ultimately be cost-neutral and yield substantial economic benefits. The Trades Union Congress (TUC) proposed more than doubling the current Jobs Guarantee scheme, which offers six-month state-funded placements for unemployed individuals aged 18 to 24.

Currently piloted in six areas and set for nationwide rollout later this year, the scheme provides entry-level roles in sectors such as administration, retail, and warehousing to address the high number of young people not in education, employment, or training (NEETs). The TUC recommends increasing the program from 90,000 to 225,000 places over the next three years, at an estimated cost of roughly £1 billion.

Economic modelling conducted by Landman Economics for the TUC suggests that the expanded program would break even within eight years and create long-term fiscal benefits exceeding £4.5 billion over 30 years. These savings stem from a combination of higher tax revenues and reduced expenditure on welfare benefits, accounting for £3.5 billion, along with an additional £1 billion expected from lower pressures on public services. The analysis estimates a return of £2.69 for every £1 invested in the scheme.

The report also examined a more modest expansion scenario, which would extend eligibility to those unemployed for 12 months and raise the number of places to 135,000. Even under this scaled-back approach, the scheme would generate approximately £2.74 billion in long-term returns.

While the government is not currently considering the TUC’s precise proposal, officials indicated openness to expanding the Jobs Guarantee based on recommendations from a forthcoming review into youth unemployment. Former cabinet minister Alan Milburn, tasked with leading this review, is expected to publish findings this autumn. Milburn, known as the government’s youth unemployment tsar, highlighted the benefits of employment over welfare following a recent visit to the Netherlands.

A spokesperson for Work and Pensions Secretary Pat McFadden expressed support for the scheme and for efforts to assist young people not in education, work, or training. “We welcome trade union and business support for the Jobs Guarantee, which we introduced because helping young people not in education, work or training should be a national cause for the country,” the spokesperson said. They added that the government looks forward to Milburn’s final report, which is expected to explore ways to expand support for young people.

TUC General Secretary Paul Nowak emphasized the need for accelerated expansion of the program, describing it as “an investment that more than pays for itself” and calling for “turbo-boosters” to increase its reach rapidly.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.