APPRENTICESHIPS will be given a huge boost as the Chancellor announced today the Government would plough in more cash for on-job training.
The initiative to help boost young workers chances to getting a job after being hit hard by the coronavirus crisis will give firms £2000 for creating new apprenticeship roles.
The Chancellor said today in his mini-budget speech: “So for the next six months, we’re going to pay employers to create new apprenticeships.
“We’ll pay businesses to hire young apprentices, with a new payment of £2,000.”
The scheme will also pay for businesses to take on apprentices over the age of 15 with a bonus of £1,500.
He said he refused to allow young people – hit hard by coronavirus – become a lost generation of workers.
He said: “Today, we act, with a plan for jobs.
“Our plan has a clear goal: to protect, support and create jobs.
“It will give businesses the confidence to retain and hire.
“To create jobs in every part of our country. To give young people a better start. To give people the opportunity of a fresh start.”
The announcement comes after growing fears young people’s earnings could be permanently scarred because of lockdown, and the IPPR think-tank forecast unemployment for under-25s could double to just over one million by the end of 2020.
Mr Sunak added: “In particular the help we want to provide for those who will be hardest hit by this crisis: younger people.
“Over 700,000 people are leaving education this year. Many more are just starting out in their careers.
“Coronavirus has hit them hard – under 25s are two and a half times as likely to work in a sector that has been closed.”
“If the first phase of our economic phase was about protection, and the second phase today is about jobs, there will come a third phase to rebuild.”
He vowed the Government would “heal the wounds” of the coronavirus pandemic.
The Apprenticeship Levy already incentivises large firms to take on apprentices, but small firms will now also be given a cash bonus for taking them on.
The scheme to boost apprentice roles for young people is in addition to plans to get more firms to take on trainees for 6 weeks – 6 months by offering them £1,000 for every trainee.
The Chancellor announced today:
- A stamp duty holiday for homes up to £500,000 to get the housing market moving
- Vouchers worth up to £5000 each for home-owners to spend on making their places more energy efficient
- A ‘kickstart’ jobs placement programme where the Government will fund 25 hours a week to an employer to take on a young person for at least six months
- A huge boost in apprenticeships – and a £1000 in extra cash for firms who take on trainees
- Employers will get a £1,000 bonus per worker they re-employ from furlough in a £9billion boost for firms
The Chancellor has also announced a massive cut to VAT for the hospitality sector to try and get more Brits out and about – meaning half price restaurants during the summer.
From Monday to Wednesday, restaurants meals will be half price throughout August to help give a much-needed boost to thousands of restaurants, bars, cafes and other hospitality venues.
Today’s radical plans are designed to save 3.2million jobs in the hospitality industry – which is the 3rd biggest employer in the UK.