YOUNG unemployed people will face having their benefits cuts if they don’t take up training or job opportunities in construction, care and hospitality under a government scheme announced yesterday.

Work & Pensions Secretary Pat McFadden said that 350,000 new training or workplace opportunities would be offered to young people on universal credit.

Asked if young people could lose benefits if they don’t co-operate, Mr McFadden told the BBC’s Laura Kuenssberg: “Yes, sanction is part of the system. This is an offer on one hand but it’s an expectation on the other, because the future we don’t want for young people is to be sitting at home on benefits when there are other options out there.”

The scheme will start in the spring, with up to 55,000 young people in line for jobs in areas including Birmingham & Solihull; the east Midlands; Greater Manchester; Hertfordshire & Essex; central & east Scotland; and south-west & south-east Wales.

Mr McFadden also announced an £820 million investment in tackling the nearly million number of young people not in education, employment or training (Neet) — including more training and guaranteed jobs for long-term out-of-work youngsters.

But Work Foundation think tank director Ben Harrison says that the threat of sanctions could do more harm than good if they push people into unsuitable or insecure jobs.

“Evidence from the UK and overseas is clear that these schemes must focus on connecting individuals to ‘good’ jobs with a living wage, job security and opportunities to progress if they are to lead to long-term sustained employment,” he said.

“If reforms end up pushing young people into ‘any job’ under the threat of benefit sanctions, they may do more harm than good to their future work prospects. Nearly half of young people currently not in education, employment or training report are disabled, so it is vital that participants have some agency over the types of jobs and sectors they work in.”

Prime Minister Sir Keir Starmer is due to announce a £725m investment to create more apprenticeships in sectors including AI, hospitality and engineering today. The number of young people starting apprenticeships has fallen by almost 40 per cent in the past decade.