In a bid to tackle the youth unemployment crisis, the government has proposed to pay companies up to £3,000.
On Monday, 16th March, the government brought forward a new scheme titled ‘Youth Jobs Grant.’ It’s a new scheme which sees parliament distribute £3,000 to select companies as a means to address the rampant decline in youth unemployment.
The grant is for people between 18 and 24 years old who are living on benefits and have been actively job hunting for a minimum of six months. It will enable firms to gain financial backing, which can be used towards the purchase of business assets and payroll increases. Additionally, young adults who have spent months job searching will have reassurance in knowing there are more places actively hiring.
Right now, the UK is experiencing a downward spiral in unemployment for the younger generation. Stats show that almost 100,000 people between the ages of 16 and 24 are either unemployed or not in further education. It’s uncertain where the future lies for young adults. Many don’t seem to have access to develop their careers with full-time work or studies.
Why are young people struggling to find work?
There’s a common misconception that young adults don’t want to find work and that they’re just lazy. However, the Secretary of State for Work and Pensions, Pat McFadden, argues against this. Instead, he believes employment is in the hands of the system, being a tricky space to navigate. On Monday, 16th March, the secretary addressed this issue at a conference at Waltham Forest College, Walthamstow, London.
“I don’t believe the notion that young people are shirkers and snowflakes. Every encounter I have had has convinced me that young people want to work, they want to make the most of themselves, and our job is to help them do that,” he says.
“…And too many young people are missing out on work not just in the short term but sometimes with lifelong consequences – let down by a system that doesn’t give them enough opportunity and too readily funnels them down a path labelled ‘unfit for work.‘
Changing this should be a cause for us all, to give hope to the country’s young people, to show that we believe in them, we back them, and want them to have a better future.”
Despite McFadden’s positive outlook, Conservative member of parliament (MP) Helen Whately considers the ‘Youth Jobs Grant’ as “economic madness” and “not the answer”. Arguing that giving companies financial backing to readdress the youth unemployment crisis is an irresponsible move.
There’s already a ‘Jobs Guarantee’ scheme. How does this differ?
The ‘Jobs Guarantee’ scheme offers support for 18 to 21-year-olds who have been unemployed for almost two years. Whereas, the ‘Youth Jobs Grant’ is specific to 18 to 24 year olds, with 6 months of unemployment status. However, the government has announced that it will make new changes to the ‘Jobs Guarantee’ scheme. Including the increase in the age range up to 24 years old.
How can the new ‘Youth Jobs Grant’ help young adults directly?
The government has estimated that the grants should help support around 60,000 young adults into successful employment. This will, of course, not be an immediate process and is said to take up to three years.
While the details of eligibility are clear for young adults, ministers have yet to address which employers will qualify for payments. Thus, there may be restrictions on work fields that young adults will have better access to within this scheme.
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Laviea Thomas is a journalist at Inside Success who writes about film, music and politics.
Outside of that, she is an experienced freelance journalist with bylines in NME, The Quietus, Metal Hammer and more.
Over the years, Laviea has been an active panellist discussing fundamental conversations in the music industry, such as diversity and inclusion, and the importance of grassroots venues. She has been a panel guest for Kerrang! Focus Wales Festival, Future Yard and more.
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