The regions Labour is giving more money to increase the number of jobs

The government has selected 16 areas as part of its 'Get Britain Working' plans.

Work and Pensions Secretary Liz Kendall during a visit to Peterborough College to attend an apprenticeship showcase, ahead of the publication of the Get Britain Working White Paper. Picture date: Monday November 25, 2024.
Work and pensions secretary Liz Kendall has unveiled reform to employment support as part of Labour's plans to 'get Britain working'. (PA/Alamy)

Sixteen areas of the UK have been granted millions of pounds by the government to boost job prospects in their area by tackling youth unemployment and inactivity due to issues such as mental health.

Work and pensions secretary Liz Kendall unveiled plans on Tuesday that it says will mean no 18-21-year-old in the UK is left without an employment or training opportunity as part of its 'Get Britain Working' plans.

The government has picked areas across the UK struggling with unemployment and high levels of long-term sicknesses that are preventing them from working, sharing a £240m pot across the regions.

Here are the areas that set to benefit.

Eight youth 'trailblazer' areas will get government funding to support young people aged 18-21 into employment, education or training, including:

Liverpool get a £5bn grant and test new ways of supporting young people into employment or training by bringing together and enhancing existing programmes in partnership with local areas.

People in the Liverpool City region struggle with handling second jobs, low-paid jobs, and temporary work, according to the Work Foundation.

The Royal Albert Dock and the Royal Liver Building in the background in Liverpool
Liverpool is one of the areas selected for extra funding. (PA)

The West Midlands will also share a slice of the £240m. The West Midlands has the highest poverty rate in the UK at 27%, according to the Joseph Rowntree Foundation.

Added to this, the region has the highest rates of in-work poverty and the highest rates of in-work child poverty.

The region's mayor, Richard Parker, said earlier this year he would work with businesses to create 20,000 new work experience placements, training placements and apprenticeships for young people. "Tackling youth unemployment is my biggest priority," he said after the area was confirmed as receiving funding.

In the Tees Valley, young people are facing challenges finding work. In May, the number of benefit claimants aged 18-24 stood at 6.9%, compared to the national average of 5.1%.

"Economic inactivity" — the number of people unemployed, not employed or looking for work — is the highest in the North East.

 Economic inactivity rate by region and reason from July 2023 – June 2024 (UK government)
Economic inactivity rate by region and reason from July 2023 – June 2024 (UK government)

Out of the 104,700 people not in work in the area, 34,800 are not due to long term sickness, according to the area's labour market profile.

Year on year, the number of people unemployed in the East Midlands rose from around 68,700 to around 90,200 over the same period.

The East Midlands Chamber, which supports businesses across the region, cautioned in October that nearly seven out of 10 businesses said they have difficulty recruiting staff in the past three months, adding: "It’s essential the new government prioritises investment into skills, so we can get candidates that match the skills employers need and get more people into work."

Kendall called Peterborough a "hot spot for youth unemployment," with 1,350 young people claiming Universal Credit.

The most advertised occupation in Peterborough was found to be metal working production and maintenance fitters at 2.2%, Cambridgeshire Live reported.

Mayor of Cambridgeshire and Peterborough Dr Nik Johnson said the £5bn funding "will be transformational" for the jobs market.

Greater London and Wales

There are three other youth 'trailblazer' regions — two in Greater London and one in Wales — but the exact locations have not been named.

Another eight areas of the country have been earmarked as inactivity trailblazers, with each receiving £20m in a drive to reduce the number of people who cannot work because of ill health.

These locations are in West Yorkshire, the North East, South Yorkshire, York and North Yorkshire, Greater Manchester, two in London and one in Wales. The location in Wales has not yet been named.

Greater Manchester mayor Andy Burnham welcomed the news, saying: "It’s great to see the Government get serious about transforming the old tick-box approach to job support into one that tackles the root causes of unemployment and poor health and sets people up to succeed."

Meanwhile, London mayor Khan said that the funding would help "ensure that young people and those who need extra support due to their health reap the benefits of future economic growth".

Three areas – West Yorkshire, South Yorkshire and the North East – will be given additional NHS funding to stop people falling out of work completely due to ill health.

Economic inactivity rate among 16 to 64-year-olds (UK government)
Economic inactivity rate among 16 to 64-year-olds (UK government)

The highest unemployment rate is in the North East, where 5.6% of people are unemployed. It is also one of the poorest regions in the UK, with 25% of the population living below the poverty line.

Meanwhile in West Yorkshire, around 101,000 people are unable to work "because of one or more health conditions", according to the West Yorkshire Health and Care Partnership.

WOLVERHAMPTON, UNITED KINGDOM - MAY 13: Mayor of West Yorkshire Tracy Brabin attends a meeting with Labour's mayors at the GTG training centre on May 13, 2024 in Wolverhampton, United Kingdom. The first meeting since local elections outlined the mayor's strategies for enhancing regional growth goals in Labour's devolution agenda. (Photo by Christopher Furlong/Getty Images)
Mayor of West Yorkshire Tracy Brabin welcomed the news. (Getty Images)

Tracy Brabin, the Labour Mayor of West Yorkshire, welcomed the news. "To grow our economy we must unleash the potential of everyone in it, and that includes giving those being held back by health conditions a fair chance to flourish," Brabin said.

And Tees Valley mayor Ben Houchen, said: "Good quality jobs are the best way to give people economic security and this is a positive step on this journey."