UK Youth Budget Response 2026

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Chancellor of the Exchequer John Healey has set out the Government’s spending plans for the year ahead in the Budget.

 This year’s Budget was relatively light-touch, reflecting global economic uncertainty and the OBR’s mixed outlook for growth. With a Spending Review scheduled for next year, the Budget focused less on detailed measures and major new announcements.

What did the Budget say that is relevant for young people and youth workers?

More to Come on Youth Employability

The Chancellor was clear that there is more to come when it comes to young people, specifically youth employability. The Budget confirmed funding for the Youth Employment and Skills package announced earlier in the Spring, including the extension of the Youth Guarantee and the Youth Jobs Grant.

He highlighted the upcoming Milburn Review final report into young people and work, due to be published in early November, and flagged that the Government would respond this year and a follow up White Paper in the new year would set out the detail on next steps. The Timms Review, focusing on the Personal Independence Payment system, will also be published later this year alongside a cross-government Mental Health Strategy.

In UK Youth’s Representation to the Autumn Budget, we called for youth work to be embedded into national employment and skills strategies including the Youth Guarantee as part of a ‘youth worker-first approach’ to reduce economic inactivity, recognising youth work as a core entry-level service function to support skills development and wellbeing for young people.  

There was also an announcement that the National Minimum Wage for 18–20-year-olds will rise by 3.9%, alongside £100 million investment in local apprenticeship services.

It is a positive step towards fairer pay and treatment for young workers, helping more young people build financial stability as they move into adulthood. However, it is a smaller increase than previous years and young people need more structured support, such as more access to paid, supported work experience incorporating youth worker support during placements to improve retention. A great example of this approach is UK Youth’s Summer Jobs programme, providing long-term rather than temporary, stop-gap support.

Tackling misogyny and VAWG

There was a welcome announcement of a £15m investment into tackling misogyny, working with the private sector to support this work.

Youth work has an important role to play in supporting young women as they grow up, promoting healthy relationships and creating safe spaces where young people can discuss these issues openly.

This investment is a positive step, but long-term support is needed to ensure prevention and education reach young people in their communities in a way that is relevant and specific to their daily lives.

Devolution developments – radical rewiring?

The new government under Andy Burnham as Prime Minister and John Healey as Chancellor has focused on the need to devolve power away from Westminster across the UK, in what they call ‘a radical rewiring of the state’ and a roadmap to fiscal devolution.

New ‘good growth’ funding announced for mayors, ‘incubator funding’ for areas without mayors, and local growth initiatives puts this into action while creating opportunities to address inequalities and improve opportunities for young people.

This must be matched by sustainable, multi-year funding for local youth services and the national infrastructure that supports them, ensuring investment reaches communities facing the greatest barriers to opportunity.

Overnight visitor levy – what could the impact be on young people and the sector?

The announcement of the Government’s commitment to an overnight visitor levy is also a potential cause for concern.

Without clear statutory exemptions, the levy risks creating unintended barriers to school residentials, youth group visits and other educational stays, like the young people visiting UK Youth’s Outdoor Learning centre at Avon Tyrell.

UK Youth, alongside Back Youth Alliance and sector partners, is advocating for the levy to exclude young people and accompanying youth workers.

UK Youth Chief Executive Rosie Ferguson said: “This Government has shown a strong commitment to supporting young people and we welcome the positive steps in this Budget to improve access to employment and help young people build financial security. There is a real opportunity to build on this momentum and ensure every young person has the support and opportunities they need to thrive.

Youth work can make this ambition a reality. A trained and trusted adult, like a youth worker, alongside paid work experience can make a huge difference in supporting longer-term pathways into education, employment and training.

As the Government develops its response to the Milburn Review and accelerates delivery of the National Youth Strategy, we look forward to building on the exciting momentum around young people and youth work to shape a more positive future.”

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