Britain unveils jobs drive for young people to tackle high unemployment
Written by: David Milliken and Elizabeth Piper
LONDON, March 15 (Reuters) – Britain will invest an additional £1 billion ($1.3 billion) to provide jobs for young people, the government said on Monday.
Youth unemployment in Britain has reached its highest level in 10 years, figures released last month show, outpacing other European countries and raising tough questions for the ruling Labor Party over its decision to raise the minimum wage.
Work and Pensions Secretary Pat McFadden announced £1 billion will be invested in grants and more subsidized jobs for companies looking to keep young people busy; He said these measures would help create 200,000 jobs.
COMPANIES WILL RECEIVE MONEY TO HIRING APPRENTICES
“These measures will deliver life-changing opportunities for young people and significantly reverse the rise we have inherited in those not in education, employment or training,” McFadden said in a statement.
Businesses will receive a £3,000 subsidy when they hire a person aged 18-24 who has been receiving unemployment benefits for the last six months. Small and medium-sized businesses will receive £2,000 for each apprentice aged 16-24.
The program, which offers 25 hours of subsidized work per week to people who have not been able to find a job for 18 months, will be expanded to include people up to the age of 24.
Some companies say employers are struggling to hire young people, citing increases in social security contributions and other costs as well as increases in the minimum wage.
The Confederation of Recruitment and Employment, an industry body, welcomed the steps but said rules on apprenticeships remained too strict and recruitment costs were too high.
“From employment tax costs to a new approach to employment rights, it’s time to take more decisive action to get young people into work by making youth opportunities more practical for firms,” REC Chief Executive Neil Carberry said.
Some employers complain that new legislation giving workers more rights will make hiring more expensive.
The government has also promised to end lower minimum wage rates for workers aged 18-20. The headline minimum wage rate currently stands at £12.21 per hour (a 29 per cent increase in the last three years), while the rate for workers aged 18-20 has risen by 46 per cent to £10 per hour over the same period and is expected to rise to £10.85 in April.
McFadden said he acknowledged that “running costs are significant and of course we are conscious of them, but this issue is deep-rooted and long-term”.
