Why it matters: Youth unemployment has risen 37% since 2021, and the government says it is now committing £1 billion to reverse that trend – with young people in Ipswich among those it says will benefit.
The big picture: Announced today by Work and Pensions Secretary Pat McFadden, the government says the package is intended to support almost one million young people nationally and deliver up to 500,000 opportunities to earn and learn over three years. Total funding, including existing commitments, amounts to £2.5 billion.
The details: The package contains four main elements:
A Youth Jobs Grant of £3,000 for businesses that hire someone aged 18–24 who has been on Universal Credit and looking for work for six months. The government says this is expected to support 60,000 young people over three years.
An expanded Jobs Guarantee, widened from 18–21-year-olds to 18–24-year-olds, creating more than 35,000 additional subsidised jobs. From autumn 2026, eligible young people in Ipswich will be able to access 25 hours per week of fully subsidised paid work for six months, at the relevant minimum wage – but only after they have been on Universal Credit and looking for work for 18 months.
An Apprenticeship Incentive of £2,000 for small and medium-sized businesses taking on a new employee aged 16–24, aimed at creating 50,000 more apprenticeships.
Reforms to the Growth and Skills Levy to prioritise young apprentices and open up new pathways in industries including artificial intelligence, engineering, clean energy and construction.
A new AI and automation practitioner apprenticeship – an 18-month Level 4 qualification – has also launched, with the first cohort beginning this month. Foundation apprenticeships will expand into hospitality and retail from April 2026.
What they're saying: Ipswich MP Jack Abbott said the announcements would "help open up new pathways for young people in Ipswich."
"For too many young people, getting that first step on the career ladder can be the hardest part," he said. "This investment in jobs, apprenticeships and skills will help ensure that more young people can earn, learn and build a secure future."
Abbott said he had been working with partners, including the University of Suffolk, Suffolk New College and the Sizewell C project, to expand training pathways locally. He added that more than 300 Ipswich residents are already working on the Sizewell C project following an agreement, he says, that guarantees 500 jobs for the town.
Work and Pensions Secretary Pat McFadden said the measures would "give life-changing opportunities to young people and significantly reverse the increase we inherited in those not in education, employment or training."
The bottom line: The government says the package represents the biggest shake-up of apprenticeships in a decade – and for young people in Ipswich who are out of work, new grants, subsidised jobs and expanded training routes could be on the way from later this year.
