The Government plans to offer businesses a £3,000 grant for hiring young people (18-24) on benefits who have been looking for a job for six months or more, aiming to get 60,000 into work over three years.
The measures, announced by Work and Pensions Secretary Pat McFadden, aim to address spiralling rates of youth unemployment, with over 950,000 16-to-24-year-olds (one in eight) not in education, employment, or training.
McFadden called the issue of youth unemployment “deep rooted,” but Conservative counterpart Helen Whately dismissed state-funded jobs as “economic madness.” The Conservatives blame Labour’s policies, including a National Insurance hike and new employment rights, for the rise.
The government is also expanding an existing scheme that subsidises six-month minimum wage jobs and will widen foundation apprenticeships into hospitality and retail. The youth unemployment rate has hit 15.9% (729,000 people) for 16-24 year-olds, the highest in 11 years.
McFadden defended the plan, stating they “want to back Britain’s young people” and that the previous lack of support for young people was the problem, not Labour’s tax or minimum wage policies. He noted that businesses are currently exempt from paying National Insurance for workers under 21 unless they earn more than £50,270.
