Government Announces Support for Businesses Hiring Young People
Yesterday, the Government announced more support for businesses so that they can offer more jobs to young people.
We know that the number of young people who are out of work and not in education or training increased by almost 250,000 between 2021 and 2024, and so this new £1 billion support package is vital.
The Federation of Small Businesses has strongly welcomed yesterday’s announcement, calling it a ‘game-changer’ for tackling youth unemployment and supporting small businesses.
Here is what we are doing:
1) Youth Jobs Grant
Businesses will receive £3,000 for every young person they hire aged 18 to 24 who has been on Universal Credit and looking for work for 6 months. This comes on top of employers not having to make National Insurance Contributions for workers under 21. The Grant is expected to support 60,000 young people into work over three years.
2) Jobs Guarantee
Young people looking for work are often hit by the catch-22 of needing experience to get experience. The Government has brought in the Jobs Guarantee which ensures every 18- to 21-year-old on Universal Credit and looking for work for 18 months or more will be guaranteed a fully subsidised 6-month paid job. Yesterday, the Government announced they would expand this to every 18- to 24-year-old. 90,000 young people will be supported through this scheme over the next 3 years.
3) Apprenticeship Incentive
Small and medium-sized businesses will receive £2,000 for each new apprentice they take on aged 16 to 24 or each new foundation apprentice aged 16 to 21. Employers will also have more flexibility to upskill their staff through seven new apprenticeship units aligned to Industrial Strategy priorities. From April, foundation apprenticeships will expand into hospitality and retail. This comes on top of employers not having to make National Insurance Contributions for apprentices under 25. The Apprenticeship Incentive will drive progress towards the Government’s target of creating 50,000 new apprenticeships.
4) Growth and Skills Levy
The Government’s Growth and Skills Levy – which replaces the apprenticeship levy – will reprioritise investment to where it is needed most, securing value for money whilst giving school and college leavers more opportunities to build careers in cutting-edge industries.
Locally, I am pleased to have secured a deal with Sizewell C to ensure 500 jobs at the project go to people from Lowestoft. I will continue to work closely with our employers to ensure they are able to provide young people with decent employment opportunities.