The Department for Work and Pensions has issued details to MPs this week about plans that are designed to help tens of thousands of young people
The Department for Work and Pensions has confirmed details to MPs of a scheme to offer a step into the workplace for Universal Credit claimants. The programme is aimed at people aged 16 to 24 and a total of 50,000 young people are set to benefit.
The new initiative has come under the spotlight this week after the government faced questions over what it was doing to help get more young people into work. Under the scheme, employers who take on a Universal Credit claimant aged 18-24 who has been out of work for more than six months will be eligible for a £3,000 youth jobs grant.
The government is facing pressure to get more youngsters out of unemployment. Official figures from May to July this year show there were 751,000 young people aged 16 to 24 who were unemployed. That is 109,000 more than the year before. The House of Commons Library says the unemployment rate for youngsters in that period was 16.4%, up from 14.3% in the previous year.
On Wednesday, Lilian Greenwood – Parliamentary Under-Secretary (Department for Work and Pensions) – responded to a question from Kent MP Sojan Joseph about support for young people in the jobs market by saying: “This government is transforming the Apprenticeships Levy into a new Growth and Skills Levy in England, backed by £1 billion of additional investment, which will support 50,000 more young people into apprenticeships and give employers, including in Kent, greater flexibility to develop the workforce they need to grow and succeed.
“As of August, the Government now fully funds apprenticeship training for all eligible under 25s for employers of all sizes. To support non-levy paying employers (typically SMEs) to meet the additional costs associated with employing young people, we have introduced a new apprenticeship hiring payment of £2,000 when they take on 16–24-year-old apprentices as new employees. Employers hiring apprentices aged 18-24 who have been on Universal Credit for over six months will also be eligible for the new £3,000 Youth Jobs Grant.
“We also provide £1,000 to both employers and training providers when they take on apprentices aged under 19, or 19-to-24-year-old apprentices who have an EHCP or have been, or are, in care. These payments can be added together where the employer and/or apprentice are eligible.
“The government also facilitates and funds the Apprenticeship Ambassador Network (AAN) which comprises around 3,000 employers and apprentices who volunteer to promote the benefits of apprenticeships. It operates across all parts of England, including in Kent, through nine regional networks which provide buddying and mentoring support to small businesses to help them recruit and retain apprentices.”
Financial support for apprentices in UK – including Youth Jobs Grant
Employers could be entitled to up to £8,000 of government funding to recruit an apprentice. The Youth Jobs Grant payment is paid in two instalments of £1,800 after 6 weeks and £1,200 after 18 weeks.
The DWP says: “Employing a young person on an apprenticeship can bring fresh ideas and energy, providing skilled talent for the future. New and existing financial support is available, and employers can claim more than one of the payments outlined below.”
Other schemes also offer funds to recruit young people. For more details, visit the government web page on the issue.
