In March 2025, the Chancellor of the Exchequer, Rachel Reeves, presented the UK’s Spring Statement, outlining the government’s financial plans. This statement includes a range of measures that will affect various aspects of the economy, including employment, housing, and welfare support. For young people, the Spring Statement brings both opportunities and challenges. Changes to wages, job prospects, and welfare benefits are likely to have a significant impact.
National Living Wage and National Minimum Wage
One of the biggest changes is the increase in the National Living Wage for workers over the age of 21. Starting in April 2025, the minimum hourly rate for these workers will rise. This is great news for people working in full-time jobs because they will earn more money.
For young people aged 18 to 20, the National Minimum Wage will also rise to £10.00 an hour. This is a welcome change, but it still shows a difference in pay for younger workers compared to older workers.
While the increase in the National Living Wage is a win, another change might affect young people. The government plans to raise Employer’s National Insurance contributions.
Affordable Housing and Construction Jobs
The government also announced a £2 billion investment in affordable housing. This money will help build 18,000 new homes that are affordable for people to rent. This is good news for young people who are struggling to find a place to live.
The government will also train 60,000 new construction workers to help build these homes. This means there will be lots of job opportunities in the construction industry.
Additionally, the government will spend money to set up construction skills boot camps. These camps will help young people learn quickly and start working in construction.
Welfare Support
A major part of the Spring Statement was about changes to the welfare system. Welfare is the financial help the government gives to people who need it. The government plans to cut some benefits, and this could hurt young people, especially those with health conditions or disabilities.
For example, the health element of Universal Credit will be reduced for new claimants starting in 2026. Right now, people who can’t work due to illness or disability receive £97 a week. But from 2026, this will drop to £50 a week. This is a huge loss for young people who depend on this support.
Supporting Young People for Mental Health
The government has also launched the Youth Guarantee, which aims to provide young people with a clear path to education, training, or a job. This is important because mental health is one of the biggest challenges young people face when looking for work.
However, the government’s plans to cut benefits, like the health element of Universal Credit, could hurt young people with mental health issues. These cuts may make it harder for them to get the support they need.
Education and Training
The Spring Statement promised more investment in apprenticeships and training programs. These are important because they help young people get the skills they need to get a good job. However, some critics say the government is not doing enough to help young people with their education. The government could do more to support young people in all types of jobs, not just in construction.
Preparing for the Future
The government also predicted that living costs would go up. From April, your water bills, energy bills, and council tax will increase. This means your overall expenses will be higher.
Also, inflation is expected to rise. Inflation is when the prices of goods and services go up, and it can make things more expensive. The government predicts inflation will average 3.2% this year. This means you might notice that things like food, clothes, and transportation will cost more than before.
What Does This All Mean for Young People?
There is some good news in the Spring Statement, but there are also some problems that young people need to deal with. There are some good things about the rise in the National Living Wage and National Minimum Wage. The money put into affordable housing and building jobs also gives young people who want to work in this field chances.
But the cuts to aid help are worrying, especially for young people who have health problems or disabilities. It might be harder for people who need help the most now that Universal Credit has been changed and health benefits have been frozen.
Even though the government has said it will add more training and opportunities, many people still think that other areas of schooling need more work. It will also be harder for young people to handle their money due to rising costs and inflation.
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