EXCLUSIVE: DWP chief Pat McFadden will announce thousands of people with disabilities and long-term health conditions will be offered fast-tracked employment as part of attempts to tackle the thorny ‘Neets’ crisis
Firms taking on young disabled people under a new government scheme will see 100% of wage costs covered for the first six months.
DWP chief Pat McFadden will announce on Sunday thousands of people with disabilities and long-term health conditions will be offered fast-tracked employment as part of attempts to tackle the thorny ‘Neets’ crisis.
Employers taking on the youngsters from April 2027 will see their wage costs covered for up to 25 hours per week for six months.
In a major expansion of the government’s £2.5billion Job Guarantee scheme, those aged 18 to 24 who receive health benefits will be offered a guaranteed job on a voluntary basis three months after their Work Capability Assessment, the government said.
The young people will also get mentoring, support with mental health, finances, and housing in order to prepare them for the workplace.
A separate scheme with £3,000 payments for firms to take on young people on benefits and looking for a job for more than six months was unveiled by the Department of Work and Pensions earlier this year.
In total, the government hopes 90,000 young people will be helped into work by the end of the current Parliament in 2029.
The move forms part of Andy Burnham’s mission to bring down the number of young people not in education, employment or training – ‘Neets’.
Speaking during his second week in Downing Street, the new Prime Minister made grappling the complex issue a personal priority.
Mr Burnham said: “I cannot accept the situation where we have so many young people in their 20s on benefits. It’s just not right for them.
“I will commit, in my time in office, to get the number of young people who are not in education, employment, and training down. I will commit to that.”
Former Labour Cabinet minister Alan Milburn is due to publish his final recommendations to the government later this year after warning earlier this year the country faces a “lost generation”.
According to the most recent figures – published in August – there were an estimated 981,000 Neets in April to June, but it is still 30,000 higher than a year ago.
Mr Milburn’s initial report in May found 45% of young people classed as Neets reported having a disability.
Ahead of his keynote speech, Mr McFadden said: “I’ve seen how the Jobs Guarantee is already changing lives and now we are putting long-term sick and disabled people at the front of the queue from April next year.
“For many young people, this will be the first chance they’ve had of a real paid job, and the dignity and self-respect that comes with that.”
Chief executive of disability charity Mencap also welcomed the announcement.
He said: “Young people with a learning disability are disproportionately likely to be out of work and not in education, employment or training.
“Earlier access to paid work, tailored support and mentoring could help prevent them from becoming trapped in long-term unemployment.”
“The voluntary nature of the scheme will give young people with a learning disability the confidence to explore work opportunities and show what they can do, without losing the support they need.
“If delivered well, with backing from employers and vital support like Access to Work, this could help tackle the NEETs crisis and get more young people with a learning disability into work.”