Employment: Young People

Extended periods of unemployment at a young age can have long-lasting consequences, including limiting of future employment prospects and reduced lifetime earnings. Early intervention is therefore critical. That is why our plan to Get Britain Working includes a new Youth Guarantee for all young people to ensure that they can access quality training opportunities, an apprenticeship or help to find work. Eight Youth Guarantee Trailblazers were launched earlier this year, and the insights gained will inform the future design and delivery of the Youth Guarantee.

Universal Credit is designed to make work pay by gradually reducing support at a steady rate allowing all Universal Credit customers to keep more of what they earn, therefore strengthening incentives to move into work and progress in work.

To support this, we apply a single taper rate of 55% to net earnings. This means that for every £1 earned, customers keep 45p, helping them see a clear financial benefit from working.

In addition, some young customers may qualify for a work allowance – the amount they can earn before the taper is applied. This is available to those responsible for children or who have limited capability for work.

Eligible young people who need childcare support can claim back up to 85% of their registered childcare costs up to the maximum amount each month. The Universal Credit childcare support is available to all eligible lone parents and couples, regardless of the number of hours they work.