Chancellor announces new significant measures to ‘Kickstart’ the economy and revive jobs for young people
The Chancellor Rishi Sunak has announced today that the Treasury will be making a huge investment in the creation of a jobs fund to support young people who have been impacted by the pandemic.
The Kickstart Scheme (See Appendix 1) will see the Treasury are invest £2bn into the jobs fund which would incentivise employers to recruit an under 25 year old and pay the wages of those young people who are claiming universal credit for up to six months covering up to 25 hours a week on minimum wage.
Alongside this, The Treasury will be making an investment in apprenticeships and traineeships which will enable young people to gain the skills and knowledge they need to meet market demands, whilst supporting employers to recruit young people.
This announcement is highly welcomed by The BAME Apprenticeship Alliance and once which will bring significant impact to the hundreds of thousands of young people who have been facing huge uncertainty.
Commenting on the announcement from CEO Isa Mutlib said:
“I’m thrilled to see this announcement from the Treasury. It’s exactly what is needed to boost the economy and kickstart the job opportunities for young people right across the country. The new measures should not be underestimated and are among the largest investments the Government has made to build the skills and employment infrastructure, protecting and saving jobs, whilst importantly creating new jobs.”
“The new measure will enable employers to build capacity to support young people who are facing an education and labour market crisis. For this, we recently supported the calls for the Opportunity Guarantee which was subsequently announced.”
“We are however concerned about the impact the pandemic will have on many young people from BAME communities who hold high aspirations but lack access to high quality apprenticeship opportunities. Therefore, we will be calling upon the Treasury and the Department for Education to make specific recommendations to encourage recruitment of apprentices from BAME communities.”
The Kickstart Scheme
- Companies will receive a £1,000 bonus for each furloughed employee who is still employed as of 31 January 2021.
- The £2bn Kickstart Scheme will pay employers to create new jobs for 16-24 year olds at risk of long-term unemployment.
- £111m to triple the scale of traineeships, ensuring that more young people have access to high quality training to gain the skills needed for future jobs.
- £32 million to expand the National Careers Service and help more people into work.
- This will provide bespoke advice on training and work for a quarter of a million people.
- £17m new funding to expand sector-based work academies to provide vocational training and guaranteed interviews for more people.
- Treasury will provide £2,000 to employers for each new apprentice they hire aged under 25, between August 2020 and January 2021.
- And will create a new payment of £1,500 for each new apprentice they hire aged 25 and over, between August 2020 and January 2021.
- Nearly £900m this year to double the number of work coaches in Jobcentre Plus to 27,000 by March 2021, helping benefit claimants find a job.
Full Government document link here: https://www.gov.uk/government/publications/a-plan-for-jobs-documents