The government has announced a £1 billion youth employment drive aiming to create 200,000 jobs and apprenticeships. This initiative also includes 150,000 work experience opportunities for individuals aged 16-24. The scheme targets young people facing high unemployment rates, which stand at 16.1% for those aged 16-24, the highest since early 2015. Apprenticeship starts for this demographic have also fallen by 40% over the past decade.
Key components include a Youth Jobs Grant offering businesses £3,000 per new hire aged 18-24 who has been on Universal Credit for six months. This grant is projected to support 60,000 young people over three years. The Jobs Guarantee is expanding to include ages 18-24, creating over 35,000 subsidised jobs, with a total of 90,000 jobs supported through this program. SMEs can receive a £2,000 Apprenticeship Incentive for each new employee aged 16-24, contributing to the government's goal of 50,000 additional apprenticeships.
The National Hair and Beauty Federation (NHBF) has expressed its intention to engage with Skills England on developing future apprenticeship units relevant to the hair and beauty sector. Caroline Larissey of the NHBF welcomed the policy, stating it lowers barriers for businesses hiring young talent and represents a step in the right direction. The Federation of Small Businesses (FSB) also supports the initiative, calling it a potential game-changer for tackling youth unemployment and inactivity. Brian Dow from Mental Health UK highlighted the positive impact secure employment has on young people's mental health and welcomed the support for skills development.
While the government's commitment to providing earning or learning opportunities for all young people is laudable, the success of this £2.5 billion, three-year investment hinges on effective implementation. The focus on sector-specific units, such as those the NHBF will contribute to, is crucial for ensuring these opportunities align with the actual needs of industries like hair and beauty. The challenge will be translating these government pledges into accessible, practical pathways for both employers and young job seekers, particularly for small businesses grappling with rising costs and skills gaps.
