Rishi’s battleplan to get Britain back to work
Multi-job skills key to nation’s big recovery, says Chancellor ● Pledge of £126million for 40,000 traineeships ● Firms to now get £3,000 for each new apprentice ● Jobs last up to a year and will include basic skills
RISHI Sunak will announce a huge expansion of workplace training in next week’s Budget to help the economy bounce back from the Covid downturn.
In his keynote Commons speech on Wednesday, the Chancellor will unveil a scheme letting apprentices work at several firms in order to learn the skills of the future.
He will also pledge £126million of Treasury cash to offer 40,000 traineeships, as well as doubling Government incentives to firms that take them on.
His proposals are included in an update of his Plan for Jobs that is also expected to extend employee furlough schemes and Government-backed loans into the summer.
The Chancellor will use his speech to give the public an “honest” assessment of the massive cost of the Government’s response to the Covid crisis.
Mr Sunak said yesterday: “Our Plan for Jobs has spread opportunity and hope throughout the crisis, helping people back into work and harnessing their talents for the future.
“We know there’s more to do and it’s vital this continues throughout the next stage of our recovery, which is why I’m boosting support for these programmes, helping jobseekers and employers alike.”
Expanding training and apprenticeships aims to help tens of thousands into new jobs as the economy recovers from the impact of the Covid lockdowns and other restrictions on businesses.
A “flexi-job” apprenticeship will enable trainees to work with a number of different employers in one sector of the economy, signing up to an agency rather than a single employer.
Ministers believe they will be able to develop their skills by taking on different jobs with multiple employers in one sector.
From July, employers will be able to bid for money from a £7million fund to create new agencies. The first flexi-job apprenticeships are expected to start next January.
Treasury officials say the scheme will be a boost for industries with flexible working patterns, such as the television and film industries.
Mr Sunak’s Budget will also increase cash incentives for businesses that take on apprentices.
Employers receive a cash payment from the Government of £2,000 for each apprentice aged between 16 and 24, and £1,500 for those over of 25.
From April, the incentive scheme will be simplified and increased with a £3,000 payment per hire, regardless of the apprentice’s age. The scheme will also be extended for an extra six months to the end of September.
Treasury research shows that there is an appetite for apprenticeships and work-based learning.
One survey found 70 per cent of employers believe apprenticeship programmes will be vital to their organisation’s recovery.
Treasury staff estimate around 40,000 young people in England will benefit from the £126million investment traineeships for people aged 16-24 who currently lack the skills, experience and confidence to begin an apprenticeship or job.
Traineeships last from six weeks to 12 months and involve work experience as well as training in English, maths and digital skills to prepare them for the world of work.
At least three-quarters of youngsters taking on traineeships are expected to move on jobs or further training. Mr Sunak is hoping the initiative will protect tens of thousands from becoming jobless.
His Budget statement is also expected to announce the piloting of new technological developments to help jobseekers find work.
A small number of Jobcentres will be trialling the use of new work-matching technology.
The latest Plan for Jobs support builds on the Government’s existing investment, including the £2billion
Kickstart work placement scheme, which has created more than 120,000 opportunities for young people.
A separate £2.9billion Restart programme has helped more than a million unemployed people find work.
The Chancellor’s move to expand apprenticeships received a vote of confidence from the nation’s business leaders yesterday. Joe Fitzsimons, a senior policy adviser at the Institute of Directors, said: “Directors will welcome the boost to apprenticeship incentives and flexibility.
“Allowing people to work for several different employers in the same sector will benefit both apprentices and employers, providing a broader range of expertise.”
Jane Hickie, chief executive of the Association of Employment and Learning Providers, said: “The extension of the apprenticeship financial incentives until the end of September could be a game-changer.
“The increase in the incentives should prove to be particularly attractive to smaller businesses who have traditionally offered apprenticeship opportunities to young people.”
Viren Patel, director of the Open University, said: “The Chancellor’s announcement is a further boost for apprenticeships in England – for the individual, the employer and the UK economy.
He added: “This simplified and more generous incentive scheme of a £3,000 payment per hire, regardless of the apprentice’s age, should help encourage more employers to think about hiring apprentices.”
ANOTHER trusted voice in this crisis has been the Chancellor Rishi Sunak, who delivers his Budget on Wednesday. Already, in the early briefings, we can see he has his eyes on the future and what is needed to initiate a proper economic recovery in this country after the pandemic.
That has to centre on jobs, supporting existing ones and creating new ones. This is particularly true for younger generations who could potentially face years of unemployment if things go wrong.
It is clear that Mr Sunak has some innovative ideas including apprenticeships across different companies to increase the skills base of trainees.
There will be a need for much more detail in the Budget as well, not least an understanding that raising taxes will be counterproductive and stymie growth.
But the early signs for next Wednesday’s statement are good.