A ‘New Deal’ for young people who are NEET Not in Education, Employment or Training –– has been announced by the government as part of its plans to tackle rising youth unemployment.
The move comes after unemployment among young people saw a rise of 37% between 2021 and 2024.
Under the new Youth Jobs Grant businesses will receive £3,000 for every 18–24-year-old they hire who is claiming Universal Credit and has been looking for work for six months or longer. This extra funding, says the Department for Work and Pensions, is expected to support 60,000 young people over a period of three years.
Jobs Guarantee – the DWP’s scheme which offers guaranteed employment for 55,000 long-term unemployed people aged 18-21 over three years, is also being broadened to cover 18–24-year-olds, providing 35,000 more subsidised jobs.
And included in the package is an Apprenticeship Incentive for SME employers who will get £2,000 for each new 16–24-year-old apprentice they take on.
These latest changes, says the DWP are ‘backed by an additional £1bn, taking the total investment into the Youth Guarantee and the additional investment in the Growth and Skills Levy to £2.5 billion over the next three years.’ This money, will, it says, support almost one million young people and help deliver up to 500,000 opportunities to earn and learn.
Work and Pensions Secretary Pat McFadden said the new package of measures would be ‘life changing’ for young people and would significantly reverse the increase in NEET numbers.
He added: “We are focusing funding where it’s needed most and giving employers the flexibility and support they’ve asked for. These reforms will give young people a vital first step on the career ladder and help business leaders recruit the talent that will grow their companies.”
At Onefile, our driving principle is to help people enhance their life chances through managing great skills training, so it’s good to see further measures designed to change the lives of those who aren’t earning or learning.
And as take up of these newly announced subsidised jobs and apprentice schemes grows, employers and training providers will need EdTech support to manage their new learners – which is where we come in.
As the leading learner management platform, Onefile can support you and your learners to get the most from these opportunities, helping you strengthen your workforce and build skills for the future. Contact us today for a discovery call.