NTIA warns youth jobs plan ‘risks missing the point’ amid sector pressures

The government’s £820m package to expand training and employment support for young people risks “missing the point entirely” unless ministers address financial pressures, the Night Time Industries Association (NTIA) has warned.The Department for Work and Pensions this week set out plans for nearly one million young people on Universal Credit to receive learning or workplace opportunities, including 350,000 new training or job placements and four weeks of intensive coaching. 

The government said the measures are intended to improve skills, strengthen employer links and widen access to interviews and work pathways.

Following the announcement, NTIA CEO Michael Kill said the policy overlooks the strain on hospitality, nightlife and the wider visitor economy, which he described as facing rising wage costs, higher taxes and increased regulatory burdens. 

Kill warned the initiative “risks missing the point entirely” if employers are unable to remain commercially viable, and added that “you cannot subsidise people into jobs that no longer exist”.

He said: “The government’s announcement of £800 million to tackle youth unemployment risks missing the point entirely if the businesses that create jobs are being priced out of existence. You cannot subsidise people into jobs that no longer exist.

“As one of the biggest employers of young people, we are keen to support efforts to get young people into work. But right now, it feels like giving with one hand and taking away with the other. Across hospitality, nightlife and the wider visitor economy, businesses are facing unprecedented pressures, rising wage costs, higher taxes, increased regulatory burdens and mounting operational expenses. This has already resulted in thousands of job losses, reduced hours and business closures.”

He added: “Announcing large funding pots may generate headlines, but it does not address the structural reality: when businesses are struggling to survive, they cannot hire, train or grow. Jobs are created by thriving enterprises, not government schemes.

“If even a portion of this £800 million were redirected into direct business support, reducing the cost of employment, easing operational pressures and restoring commercial viability, the job opportunities for young people would follow naturally.”

Kill concluded: “Until government policy supports the survival and growth of the sectors that traditionally employ young people, there will remain a stark contradiction between political promises and economic reality.”

The government’s guaranteed jobs scheme, targeted at areas with the highest need, is due to begin in Spring 2026.