£2k to tell apprentices: You’re hired

YOUNG people will benefit from apprenticeships, traineeships and a ‘kickstart’ scheme to prevent a generation from becoming economic casualties of coronavirus.

Chancellor Rishi Sunak announced that businesses will be given £2,000 for each new apprentice they hire under the age of 25.

The money will be in addition to the existing £1,000 payment the Government already provides for new traineeships for 16 to 18-yearolds. Mr Sunak also announced a £2billion ‘kickstart’ scheme to alleviate youth unemployment by subsiding work placements to keep young people off the dole.

Taken together, the package represents a radical attempt to prevent the younger generation being disproportionately affected by the economic fallout from the virus.

The plans were welcomed by industry and unions who have warned that younger people will be hardest hit.

The Treasury has acknowledged young people are more likely to be furloughed under the job retention scheme which is due to end in October. Younger generations have also had their education disrupted, and are more likely to struggle to find jobs in a contracting market.

Mr Sunak said yesterday that investment in traineeships will reach £111million in the current financial year, three times the original scale. He said £17million of funding will be made to triple the number of sector- based work academy placements, and nearly £900million to double the number of work coaches to 27,000.

He added that more than 250,000 more young people will benefit from an extra £32million investment in the National Careers Service.

It comes after he announced the kickstart scheme yesterday which will see the Treasury pay the wages of thousands of youngsters if firms agree to hire them for six months.

Ministers hope it will create thousands of jobs for 16 to 24-year-olds claiming Universal Credit and at risk of long-term unemployment.

Government funding would cover 100 per cent of the minimum wage for 25 hours a week, with bosses able to top up wages. Richard Rigby, head of policy at youth charity The Prince’s Trust said: ‘The Government has pledged much needed action to provide vital opportunities to unemployed young people in the difficult time ahead.

‘The challenge will be immense, but today marks a welcome start. We will work with Government and employers to ensure young people have a chance to succeed.’

Kirstie Donnelly, chief executive of the City and Guilds Group, said: ‘We welcome the Government’s investment in training, guidance and work experience as a way to reduce unemployment – whether via traineeships, apprenticeships, technical training, or the Government’s Kickstart work placements or careers advice. These interventions may have the potential to tackle unemployment and help boost productivity, but only if they genuinely lead to new skills and real jobs at the end.’

The British Chambers of Commerce’s head of people policy, Jane Gratton, said: ‘The Chancellor has listened to our calls for a wage subsidy to help employers create high quality apprenticeships for young people entering the workforce in a difficult year.’

The general secretary of the Trades Union Congress, Frances O’Grady, welcomed the kickstart measure as a ‘good first step’ to prevent mass youth unemployment.

The Government also hinted it would create a support scheme for the long-term unemployed which will be announced soon.