RISHI Sunak confirmed in his budget today every firm who hires an 18-24 year old trainee will get a £1,000 bonus.
In the new financial package to relaunch the economy after the coronavirus shutdown, the Chancellor is helping young people get into the workforce.
The package – revealed by HOAR last week – is aimed at helping one of the age groups hardest hit by the lockdown which forced most of British industry into hibernation.
The Chancellor said: “Traineeships are a proven scheme to get young people ready for work.
“We know they work, so for the first time ever we’ll pay employers £1,000 to take on trainees, with triple the number of places.
“To support 18-19-year olds leaving school or college to find work in high-demand sectors like engineering, construction and social care, we’ll provide £100m to create more places on Level 2 and Level 3 courses.”
He pledged £111million to the scheme which will incentivise firms to take on and train young workers struggling to find a job.
One in three workers between 18-24 have been earning less during the coronavirus lockdown and are the age group most likely to see long term damage to their earnings.
The traineeships can last from six weeks to six months and new starts will be able to take advantage of extra support in maths, English and CV writing and guidance on what to expect in the workplace.
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 new initiative aims to triple the number of trainees taken on by employers this year.
According to the Treasury, young workers who taken on traineeships wind up in full-time jobs or further study within 12 months.
A £2billion initiative included in the financial package will pay towards six months of wage costs of each 16-24 year old hired by employers to support young people.
The Kickstart scheme for young workers will cover 100 per cent of the minimum wage for a maximum of 25 hours a week – with firms able to top up wages.
Chancellor Rishi Sunak hailed it as one of the biggest jobs support packages in decades.
Devolved administrations in Scotland, Wales and Northern Ireland will also be given £21 million for similar initiatives, and work academies will receive an extra £17million in investment.
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.