The UK is expected to offer the EU a new youth mobility scheme, allowing Europe’s young workers and students to live and work in Britain for up to three years. 

Part of Prime Minister Sir Keir Starmer’s broader efforts to reset post-Brexit relations with the bloc, the proposal could provide new opportunities to tens of thousands of 18 to 30-year-olds in both Britain and Europe. 

The plan is expected to mirror the UK’s existing agreements with 12 countries, including Australia, New Zealand, South Korea, and Hong Kong, which grant a limited number of visas to address migration concerns. 

Those coming to the UK would be required to pay an NHS surcharge of £776 to use the service but would not be eligible for welfare benefits.

Pinsent Masons’ Shara Pledger says the Youth Mobility Scheme provides UK employers with greater flexibility and freedom to recruit young talent compared to other visa options, such as complex sponsorship routes and internships. 

“Its flexibility makes it ideal for seasonal recruitment and casual roles, while also offering a diverse talent pool for permanent positions,” she tells GML.

Such an agreement has been a key demand from EU nations in ongoing talks with the UK. But while Starmer’s government has yet to confirm the proposal, a deal could be on the table ahead of a major UK-EU leaders’ summit in May. 

The scheme’s supporters argue it would boost economic growth, improve workforce mobility, and repair strained relations between Britain and the EU. However, political fears over rising immigration figures and fears of a return to free movement may complicate negotiations in the coming weeks.

“British citizens would be able to work in the EU too under this scheme, so a flow of workers each way will help multinational businesses with operations in the UK and EU, to assist with projects, skills development and training, and knowledge sharing between offices,” says Taylor Wessing’s Charlie Pring.

Addressing labour shortages

Labour shortages in key industries have become a growing concern in the UK, with sectors such as hospitality, construction, and agriculture struggling to find workers post-Brexit. 

“There are clear benefits of a reciprocal scheme that allows EU and British young people to live and work in the UK and EU respectively for a fixed period,” Pring explains. 

“Currently, in many cases, a young person from the EU that wants to spend a couple of years working in the UK needs visa sponsorship from a UK employer.  

“Sponsorship involves red tape, delays, and immigration costs that are often multiple times higher than other European countries, putting it out of reach for many SMEs.”

For businesses willing to sponsor, since April 2024 they must also offer a salary that is at least £38,700 or the going rate for the specific job, with no regional variations.

“Contrast that with youth mobility schemes that are unsponsored with no equivalent minimum salary rules, giving employers access to a much wider talent pool, including for temporary projects or seasonal work, and in areas of the UK that would struggle to meet the minimum salary levels for sponsorship,” Pring adds.

In its October 2023 review of the Shortage Occupation List, the Migration Advisory Committee noted: “We have long argued that expanding the Youth Mobility Scheme to other more countries, in particular those located close to the UK with which we already have close links, would be beneficial to sectors with a more fluid labour market.”

According to Pledger: “Youth Mobility options have traditionally been popular in sectors with high staff turnover. These sectors often struggle with the requirements for sponsorship into vacancies, especially with increased salary thresholds.”

Before Brexit, skills shortages were often addressed by EU workers who benefitted from freedom of movement. However, critics within the Conservative Party have warned the proposed deal would “betray” the Brexit vote by reintroducing free movement.

“It’s clear that this is not the case. Applicants would have to pay visa fees and permission would be time limited,” Pring explains.

“Visas are typically limited to two years, so while a scheme could help maintain a steady flow of workers in high turnover roles, it may not address more permanent skills gaps in sectors like healthcare and technology.”

Economic impact 

The Liberal Democrats have welcomed the move as a “victory for common sense”, while pro-EU campaigners, including the European Movement UK, said it could help reverse some of the negative economic impacts of Brexit.

The UK government's official position is to describe youth mobility schemes as valuable cultural exchange opportunities for young people, rather than a route for economic growth, but a scheme giving access to a larger supply of workers should do this in turn. 

“Addressing skills gaps, even with temporary workers, would significantly benefit the UK economy. Expanding the candidate pool also brings the advantage of diverse perspectives and ideas,” says Pledger. 

The UK’s relationship with the EU remains crucial and could become even more important given a realignment of geopolitics following President Donald Trump’s return to the White House. 

“An EU Youth Mobility scheme could serve as a valuable tool for negotiating favourable trade agreements in the future,” adds Pledger.

Pring adds: “Easing visa restrictions should boost tourism revenue and help to ease the staffing pressures in key sectors that are struggling to recruit a workforce to meet demand. 

“With the UK government's focus on economic growth, a youth mobility scheme may be part of the solution to support critical infrastructure and housing projects.”

Another major point of discussion is the proposed cap of 70,000 participants. 

“Existing Youth Mobility schemes accommodate around 81,000 people, so an increase of another 70,000 places would be a significant expansion,” notes Pledger.

“However, a figure of 70,000 extra spaces is relatively low considering these would cover the entire EU. Australia’s allocation of 45,000 places serves just under six million people. In contrast, 70,000 places for the EU would be available to about 67 million, making competition for spots likely to be intense.”

Pring adds: “From the government’s perspective, it is committed to reducing net migration numbers, so a cap provides certainty on numbers. 

“From the viewpoint of employers and applicants, a cap that's likely to be hit means the uncertainty of facing a lottery, making recruitment and life planning difficult. But a capped scheme for British and EU young people is still preferable to no scheme at all.”