Labour gives firms £5k to hire foreign workers, subsidising visas while young in UK struggle to find jobs

By SOPHIE CHURCH - POLITICAL REPORTER Published: 23:16, 10 June 2026 | Updated: 23:16, 10 June 2026 Rachel Reeves is set to pay £5,000 to businesses for every foreign worker they hire – despite Britain facing its own crippling youth unemployment crisis. Under plans announced on Wednesday, the Government will offer ‘high-growth’ firms up to £25,000 a year to hire skilled workers from abroad, with the money covering the cost of their visas and those of their dependants. And the scheme – targeting hires in the tech and digital, life sciences and clean energy sectors – will bump visa sponsor applications from international businesses to the front of the queue as the Chancellor desperately tries to draw investment into the UK. But the plans were met with a fierce backlash on Wednesday for prioritising foreign workers over the millions of young Brits struggling to find work. Reform UK chairman Lee Anderson last night accused Labour of ‘effectively subsidising companies to recruit from other countries while hundreds of thousands of young Britons are left out of work’. He said: ‘British taxpayers should not be footing the bill for importing labour when our own graduates and job seekers are being left behind. ‘It’s no wonder union members across the country are turning to Reform. ‘Brits should be first in line for jobs, training and opportunities in their own country. Only Reform UK will put British workers first and give young people the future they deserve.’ Rachel Reeves is set to pay £5,000 to businesses for every foreign worker they hire – despite Britain facing its own crippling youth unemployment crisis The Chancellor has introduced the scheme just weeks after Alan Milburn warned Labour Britain risks a ‘lost generation’ of jobless youth And Migration Watch UK accused Labour of wanting to ‘make the backdoor into Britain even cheaper and more accessible’. A spokesperson for the think tank said: ‘This will be a disaster for young British workers who already face the worst jobs market in a generation.' The Chancellor has introduced the scheme just weeks after Alan Milburn warned Labour Britain risks a ‘lost generation’ of jobless youth. The former Labour health secretary – currently leading a Government inquiry into young people not in education, employment or training – warned that one in six young people would be on benefits by the end of the decade. Despite this, Ms Reeves on Wednesday said Labour would back British firms with the ‘finance, talent and support they need to succeed’ as she opened the door to foreign workers. Labour will also now speed through visa applications for firms based overseas that have not yet begun trading in Britain. This would cut the time it takes for businesses to obtain their ‘Expansion Worker’ sponsor licence – which allows temporary relocation to Britain – from several weeks to around 10 days. No comments have so far been submitted. Why not be the first to send us your thoughts, or debate this issue live on our message boards. By posting your comment you agree to our house rules. Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual. Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual We will automatically post your comment and a link to the news story to your Facebook timeline at the same time it is posted on MailOnline. To do this we will link your MailOnline account with your Facebook account. We’ll ask you to confirm this for your first post to Facebook. You can choose on each post whether you would like it to be posted to Facebook. Your details from Facebook will be used to provide you with tailored content, marketing and ads in line with our Privacy Policy.