We call upon the UK Government and the Department for Work and Pensions to create a new Future Jobs Fund-style programme, offering paid, additional jobs to young people who are not in education, employment or training, or who face significant barriers to work.

The programme should work with councils, employers and voluntary, community and social enterprise organisations to create worthwhile jobs that benefit local communities. The new Future Jobs Fund should have clear funding, eligibility criteria and evaluation plans. 

Every young person offered a suitable job within their capabilities should be required to take it or face a possible loss of benefits.

Why this matters

Young people need a genuine route into work. Advice and training can help, but they cannot replace the experience, routine, and income that comes from having a real paid job.

The original Future Jobs Fund created just over 105,000 jobs between October 2009 and March 2011. A 2012 Department for Work and Pensions evaluation found that, two years after starting, participants were 11 percentage points more likely to be in unsubsidised employment and 7 percentage points less likely to be receiving welfare support than similar non-participants.

The programme had a cost. The evaluation estimated a net cost to the Exchequer of about £3,100 per participant, alongside an estimated net benefit to society of about £7,750 per participant, in 2012/13 prices. 

The new programme should learn from that evidence: create additional paid jobs for young people who need them, make sure the roles provide real value to communities, and publish clear information about the costs and benefits of the programme.