‘Kickstart’ to keep Scots off dole

YOUNG people in Scotland will benefit from a ‘kickstart’ scheme to prevent a generation becoming economic casualties of coronavirus.

Chancellor Rishi Sunak yesterday announced a £2billion initiative to alleviate unemployment by subsiding work placements to keep young people off the dole.

The scheme is part of a package which represents a radical attempt to prevent the younger generation being disproportionately affected by the economic fallout.

As well as ‘kickstart’, businesses in England will be given £2,000 for each new apprentice under the age of 25 that they hire.

The money will be in addition to the existing £1,000 payment the Government already provides for new traineeships for 16 to 18-yearchallenge olds. Although this will not affect Scotland, money for the schemes will be handed to the Scottish Government under Barnett Consequentials.

The plans were welcomed by industry and unions, who have warned that younger people will be hardest hit. The Treasury has acknowledged that young people are more likely to be furloughed under the job retention scheme, which is due to end in October.

Richard Rigby, head of policy at the Prince’s Trust, said: ‘The Government has pledged muchneeded action to provide opportunities to unemployed young people in the difficult time ahead. The 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 & 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.’

Scottish Chamber of Commerce (SCC) chief executive Liz Cameron said: ‘The kickstart scheme is a practical step in the recovery that will protect existing jobs while creating new ones.’

She said the SCC was ready to work with ministers to ‘ensure the plans are successfully delivered on the ground’.

The kickstart project will mean the Treasury pays the wages of thousands of youngsters if firms agree to hire them for six months.

It is hoped it will create thousands of jobs for those 16 to 24 who are claiming Universal Credit and at risk of long-term unemployment. Government funding will cover 100 per cent of the minimum wage for 25 hours a week, with bosses able to top up wages.

General secretary of the Trades Union Congress, Frances O’Grady, welcomed the kickstart measure as a ‘good first step’.

And Confederation of British Industry director-general Dame Carolyn Fairbairn said the plan ‘will be a much-needed down payment in young people’s futures’.

Scottish Secretary Alister Jack said the move was ‘great news for young Scots’, adding: ‘The Chancellor has set out a fantastic package of support.

‘The devolved administration now needs to play its part and show they are serious about Scotland’s economic recovery.’

Mr Sunak also set out a series of pledges in devolved areas. Investment in traineeships will reach £111million in this financial year, three times the original scale.

He said £17million of funding will be made to triple the number of work academy placements, and nearly £900million to double the number of work coaches to 27,000.

Although this does not directly impact Scotland, there will be Barnett Consequentials, which ministers can use for similar pledges.