Autumn Budget 2025: What It Means for the Youth Sector and Why YPFs Matter More Than Ever
This year’s Autumn Budget, announced by Chancellor Rachel Reeves, delivered updates on income tax, state pensions and mileage based EV charges - but what was noticeably absent was any long-term solution to rebuilding the UK’s youth services.
After a decade of austerity cuts that have hollowed out youth services, it is hard not to notice what’s still missing in this year’s Budget. Beyond the employment-focused Youth Guarantee, there is still no comprehensive strategy for young people and no multi-year investment in the youth sector.
At Young H&F, we welcome the intent behind the Youth Guarantee investment, But we also feel a responsibility to be honest about what this Budget does - and doesn’t - do for the youth sector.
Where the Budget Offers Promise
Scrapping the two-child benefit cap
One of the most significant announcements, and arguably the most transformative for young people and families, is the scrapping of the two-child benefit cap. This change is expected to lift hundreds of thousands of children out of poverty and ease pressure on families already navigating rising living costs. For many of the young people in our borough, this shift could make an immediate and meaningful difference to their wellbeing, stability and long-term prospects.The Youth Guarantee
The Budget’s flagship youth measure is the £820 million Youth Guarantee, a three-year commitment designed to help tackle youth unemployment. Under the scheme, every eligible young person who has spent 18 months on Universal Credit without work or study will be offered a six-month paid work placement. The Chancellor framed the Guarantee as a promise that every young person will receive “the support and opportunity they deserve” through a place in college, an apprenticeship or personalised employment support. For young people facing significant barriers to employment - including many across Hammersmith & Fulham - this level of structured support could be a powerful stepping stone into longer-term opportunity.Support for apprenticeships
Rachel Reeves also announced that apprenticeship training for under-25s will become completely free for small and medium-sized enterprises. This removes one of the biggest obstacles for SMEs hoping to take on apprentices and opens up more routes into skilled work at a time when many young people are struggling to secure sustained employment.Increases to minimum and living wages
The Budget also confirmed wage increases from April 2026, including:a 4.1% rise in the national living wage (21+) to £12.71 an hour
an 8.5% increase for 18–20-year-olds to £10.85
a 6% rise for 16–17-year-olds and apprentices to £8
For young people already in work, especially those struggling with low pay, insecure hours or caring responsibilities, these increases may help ease financial strain and improve living standards.
Finally, the appointment of former Health Secretary Alan Milburn to lead an inquiry into the causes of rising youth inactivity and the growing number of young people not in employment, education or training (NEET) - that was announced earlier this month - is another encouraging sign for the sector. Understanding the structural drivers - from health and education to labour market barriers - will be essential if future interventions are to genuinely shift outcomes for young people.
Where the Budget Falls Short
1. No foundational investment to underpin the upcoming national Youth Strategy
A National Youth Strategy is expected later this year or early next - a welcome development for the sector. But without any meaningful foundational investment in this Budget, there are real concerns about how ambitious or transformative that strategy can truly be. A vision without resourcing risks becoming another statement of intent rather than a plan that delivers.
2. No multi-year investment in the infrastructure young people rely on
Years of austerity have brought put our sector under extreme pressure. Youth centres have closed, outreach teams have been lost and many grassroots organisations operate on shoestring budgets. Without multi-year investment to rebuild infrastructure, progress will continue to be patchy and uneven across the country. The Spending Review echoed this gap: whilst some funding streams were announced, these fall far short of what is needed to reverse more than a decade of cuts.
3. Over-reliance on short-term, targeted programmes
The Budget continues a familiar pattern of funding specific initiatives such as paid placements or apprenticeship support rather than investing in stable, long-term services that wrap around young people’s lives. Short-term, time-limited schemes may help individuals in the moment, but they do not rebuild a strong, equitable youth sector that can meet the full range of needs that young people have today.
4. A narrow definition of ‘support’ for young people
Whilst employment is a crucial part of a young person’s journey, it is not the whole picture. Young people also need:
safe spaces
mental health and wellbeing support
opportunities for creativity, expression and belonging
consistent relationships with trusted adults
A Budget that focuses predominantly on the labour market risks overlooking the relational and preventative role youth work plays in helping young people build confidence, resilience and community connection.
5. Funding that doesn’t match the scale of need
Despite positive moves like scrapping the two-child benefit cap, the structural issues facing young people - poverty, mental ill-health, housing insecurity, violence, isolation - cannot be addressed through individual programmes alone. Without investment in local youth services, these issues will continue to surface again and again. Youth organisations in boroughs like our own are working tirelessly, but many lack the resources to respond to rising demand, complexity and need.
Why Young People’s Foundations Matter More Than Ever
As the Budget highlights gaps in national strategy and investment, the role of YPFs, including Young H&F, become even more critical. In a landscape where national commitments remain uncertain and funding continues to arrive in short bursts, Young People’s Foundations (YPFs) offer something the current policy environment does not: long-term, place-based support and the ability to strengthen youth services from the ground up.
1. We provide local infrastructure
YPFs bring together public sector bodies, voluntary sector organisations, schools, funders and young people to create a coordinated ecosystem of support. We fill the structural gaps left by years of cuts and fragmentation, ensuring youth provision is connected rather than isolated.
2. We strengthen grassroots organisations who know their communities best
We know that many of the most impactful youth organisations in Hammersmith & Fulham are small, hyper-local and deeply trusted - but they often lack the capacity, funding or administrative support to thrive. YPFs help to build that capacity through free expert-led training and opportunities for collaboration as well as tailored support and funding opportunities.
3. We champion youth voice and co-production
Youth work is at its best when young people are given not only given a seat at the table, but when that seat is pulled out for them and made ultra comfortable. Through our Youth Collective, Young Grant Makers Programme and partnerships with local organisations, we ensure young people influence priorities, programmes and decision-making across the borough. A Youth Strategy will only succeed if young people themselves are genuine partners in its delivery.
4. We help funding reach where it is needed most
Targeted, short-term funds often miss smaller community organisations. YPFs ensure local organisations are aware of opportunities and are supported to apply for them. We help funding flow effectively across communities - not just to the organisations with the biggest admin teams.
5. We reduce duplication and create genuine collaboration
Without coordination, youth provision can become fragmented, with gaps in some areas and duplication in others. Young Hammersmith & Fulham and other YPFs are conveners. We help organisations and groups align priorities and ensure resources are used strategically. This strengthens the overall sector and offers young people more consistent, high-quality support.
The Autumn Budget offers some meaningful steps for young people - particularly through the Youth Guarantee, increased wages and the long-overdue scrapping of the two-child benefit cap. These measures will hopefully make a real difference to many young people and families.
The Budget also makes clear however, what remains missing: a long-term, properly funded commitment to rebuilding the youth services that young people rely on. With a National Youth Strategy expected later this year or early next, the absence of foundational investment raises questions about how ambitious that strategy can truly be and how far it will go in repairing the damage of the past decade.
In the meantime, Young People’s Foundations like Young H&F will continue doing what we have always done:
strengthening the local youth sector,
supporting our brilliant VCS youth organisations,
embedding youth voice into our work,
supporting collaboration and connection across the sector
Whilst the points about highlight the clear value of YPFs, we cannot - and should not - be seen as a substitute for sustained national investment. With London councils warning that proposed reforms could strip away up to half of children’s services funding, the need for resourced, multi-year national action is urgent. YPFs help mitigate the impact by strengthening local ecosystems, but we cannot fill the gaps left by structural underfunding alone.
Until national policy catches up, we remain committed to building the foundations locally. The individuals and organisations supporting young people in Hammersmith & Fulham - and young people themselves - deserve nothing less.