Government’s 'New Deal' investment in youth employment is welcome, but there is more to do to support young people’s health

We welcome the Government’s investment in youth employment, but there is more to do to support young people’s health

The Government’s announcement of a further £1 billion investment in youth employment to create 200,000 new jobs and drive up the quality of apprenticeships for young people is a welcome step. Indeed, it addresses many of the priorities we raised through our evidence (published today) to the current Work and Pensions Committee inquiry on these issues.

But to ensure as many young people as possible can fully benefit, we believe further action is needed to integrate mental health and employment support, investing in community rooted provision and addressing the structural barriers that limit opportunity.

People’s Health Trust’s Good Work for Young People’s Mental Health programme continues to demonstrate the value of long-term, relational, community-based support in helping young people access and sustain good work.

Youth Employment Inquiry Evidence Published

The Work and Pensions Committee has published our evidence to their Youth employment, education and training inquiry. This inquiry aims to complement the independent Milburn Review into Young People and Work, which is examining the causes of economic inactivity and ways to help young people into work, education or training.

Several aspects of the Government’s announcement reflect our evidence and recommendations: 

1. Recognition of structural barriers 
The scale of investment acknowledges that youth unemployment is driven by deeper determinants linked to place and poverty, echoing our findings on shrinking local opportunities and community-level disadvantage. 

2. Emphasis on pathways into secure work 
The reforms focus on helping young people access stable, quality employment, aligning with our call to prioritise good work rather than simply reducing the numbers of young people out of work or education.

3. Importance of employer engagement 
Our Good Work for Young People's Mental Health programme (and its innovative approach to embedding the Individual Placement and Support model within trusted community organisations) demonstrates the value of working with employers early to set up the right adjustments and expectations, alongside dedicated mental health support.

4. Broadening access for the most disadvantaged 
Expanding the Jobs Guarantee to 18–24-year-olds recognises the additional challenges older young people face, particularly in areas experiencing long-term deprivation.  

Ways to go further

While the package announced is a positive step, we’d like to see further cross government action on:

1. More integration between mental health and employment support 
Long waits for mental health services are a major barrier to sustained work - integrated models like IPS show strong promise but require further national commitment. 

2. More focus on wider determinants of health and work outcomes 
Housing insecurity, poor transport, isolation and limited local infrastructure all shape young people’s choices and access to work. These structural issues require long-term, place-based investment, and a joined-up approach between departments and agencies. 

3. Transition cliffs remain unaddressed 
Our evidence shows poorly supported transitions - between school and further education, or from education into employment - contribute to disengagement. We’d like to see closer work with young people and the organisations that support them to address some of these cliff edges, whether through policy or investment.