Employers to receive £2,275 for every young hire… The Government has encouraged employers to hire more young people by making a £1 billion wage subsidy available.
This subsidy forms part of the government’s “Youth Contract” which aims to get more young people working through initiatives and schemes that make the recruitment of younger workers more appealing to businesses.
Employers would receive £2,275 for every young person they hired between the ages of 18-24 from the government’s Work Programme to cover expenses like National Insurance. The payments would be forwarded to the employer after the young person had completed 26 weeks of employment.
In the current economic climate a lot of smaller businesses face issues with cash flow so the government would forward these businesses the first instalment of the subsidy after 8 weeks.
Part-time positions are also eligible for the incentive and a young employee working between 16-29 hours would result in a subsidy of £1,137.50 being offered to the employer.
Deputy Prime Minister Nick Clegg is lobbying business interests to participate in the scheme and help ease the problems of youth unemployment.
He said: “This is a long-term boost to help business get young people into jobs before long-term damage is done. Employers have a huge part to play in this and the subsidy we’re announcing today benefits business and young people.”
Employment Minister Chris Grayling also commented on the subsidy: “With the wage incentive we are encouraging employers to take a chance on a young person who otherwise may have been over looked for a lack of experience or skills.
“Over the three months since we announced the Youth Contract we have consulted with businesses large and small to develop a system that works for them.”
Other initiatives proposed by the Government to get young people back to work include incentive payments of £1,500 for each apprentice taken on by an employer and the 250,000 work experience places created through the Department for Work and Pension’s work experience and sector-based work academies programmes.