DWP names first jobs guarantee delivery partners

Some of the country’s biggest employment support providers have been chosen to deliver the first phase of the government’s flagship youth unemployment scheme.

The Department for Work and Pensions (DWP) has today appointed six organisations as lead delivery partners to run the “jobs guarantee” in six areas ahead of a national rollout.

They will be responsible for matching unemployed young people to suitable jobs, reimbursing employers for wage and onboarding costs and providing wraparound support before and during placements.

The jobs guarantee is one of the government’s key initiatives to tackle stubbornly high youth unemployment. Eligible young people will have access to a fully subsidised six-month paid job through the scheme. They must be aged 18 to 21 and have been on universal credit and looking for work for 18 months.

Catch 22 will deliver the scheme in Birmingham and Solihull, Ingeus in the East Midlands, The Growth Company in Greater Manchester, Reed in Partnership in Hertfordshire and Essex, The King’s Trust in central and east Scotland and Itec Training Solutions in south west and south east Wales.

The scheme is part of the government’s wider youth guarantee, backed by £820 million, to ensure young people can access work, training or education.

First phase before rollout

DWP expects 1,200 referrals in phase one, although the guidance said referral numbers could increase if capacity allows.

Delivery organisations have until October 2026 to assess and place eligible young people, and job placements in this phase must be completed by April 2027.

Covering the six-month job placement, the government will fund 100 per cent of wage costs at the minimum wage for up to 25 hours per week, plus employer national insurance and minimum pension contributions.

In addition, delivery organisations can claim up to £2,250 per participant for wraparound support and training, £400 for administration and up to £250 for employer onboarding costs.

DWP’s guidance said the scheme will roll out across England, Scotland and Wales “later” this year. Ministers have said the scheme will provide 55,000 job placements over the next three years.

The six areas chosen for phase one were selected because they were identified as having the “highest need”.

FE Week has asked DWP for the value of the funding agreement for each delivery organisation.

Meaningful jobs

Guidance published today stated jobs funded through the scheme must provide “meaningful work”.

This means the job “must not involve significant classroom or online training” and “must be equivalent to a job not funded by the jobs guarantee”.

Delivery organisations also have to assess the capacity of the employer and ensure job placements can cater for young people with complex needs.

“It is expected that young people will be placed with reputable employers within the local area,” according to DWP guidance.

It also suggests some flexibility on eligible participants, such as accepting young people who have “minimal work history” over 18 months and 22 to 24 year olds if there is “spare capacity”.

The jobs guarantee is part of a wider package of initiatives aimed at reducing the estimated one million young NEETs (not in education, employment, or training).

The wider youth guarantee is backed by £820 million over the spending review period, which ministers say will reach almost 900,000 young people, create around 300,000 more work experience and training opportunities, expand youth hubs and fund guaranteed six-month jobs for 55,000 18 to 21-year-olds.

A government-commissioned investigation into young NEETs, led by former Labour minister and social mobility commissioner Alan Milburn, is due to report in September.