With many sectors of society facing the kind of pressure most people haven’t seen in living memory, the treasury has unveiled a number of measures designed to help the economy bounce back and help to reduce youth unemployment.
Before the announced budget, Chancellor Rishi Sunak informed ministers in the House of Commons that he intended to protect as many jobs as possible, despite the challenging circumstances, but what does this mean in practice?
The largest employment support package in decades
Significant unemployment is expected in the forthcoming months, with young people being twice as likely to be affected by job cuts. In a bid to ensure the younger generation are not left behind, measures have been outlined to support the UK’s under-25’s.
Subsequently, the Kickstart Scheme was announced. The Kickstart Scheme would fund 100% of the minimum wage over a 25-hour week for participants throughout the UK and give employers the ability to top up wages.
The scheme will hopefully generate hundreds of thousands of jobs for young people and reduce the number of under 25’s claiming Universal Credits.
It is also hoped these measures will mitigate the long-term impact youth unemployment has on people’s self-esteem, future prospects, and on the economy as a whole.
For business owners and managers, this presents an opportunity to take on young staff without making a large financial commitment during these challenging times.
This has been touted as the largest job support package in decades. Experts predict it will cost the taxpayer £6,500 for each job created. However, in the long term, Mr. Sunak believes it will stimulate large-scale hiring and will therefore lead to a greater economic recovery over time, going on to state that the initial £2bn pot could be topped up if employers make use of the scheme.
Many industry analysts are already praising the ambition and scope of the initiative, with a spokesperson from the Federation of Small Business, alongside many others, welcoming the announcement.
Trainee support packages
Another £100million has also been pledged to create more places on courses for in-demand sectors such as engineering, construction, and social care, to support school leavers looking to find careers in these industries.
Business owners will also receive £1000 cash incentives to take on young trainees for placements, meaning many more apprenticeship opportunities for young people will be created.
Furlough return bonus for business owners
In addition, business owners are being incentivised to re-employ furloughed workers and keep them in employment until late January 2021 by offering a £1000 bonus per worker.
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