The government has launched a £1 billion employment drive aiming to create 200,000 jobs and opportunities for those aged 16-24. This initiative addresses the highest youth unemployment rate in 11 years, with the Office for National Statistics reporting 16.1% of 16-24-year-olds are jobless. Apprenticeship starts for young people have also fallen 40% over the last decade.
The plan includes a Youth Jobs Grant of £3,000 for businesses hiring 18-24 year olds who have been on Universal Credit for six months. The Jobs Guarantee will expand to cover 18-24 year olds, creating over 35,000 subsidised roles. Small and medium-sized enterprises will receive a £2,000 incentive for each new apprentice aged 16-24.
Reforms to the Growth and Skills Levy aim to give young people more chances in emerging industries. These changes represent the largest apprenticeship reforms in a decade, offering employers more flexibility in training. The initiative is part of a £2.5 billion investment over three years into the Youth Guarantee and Growth and Skills Levy.
While the government touts 500,000 learning and earning opportunities, the specific breakdown suggests a significant emphasis on training and work experience. Just under half of the total opportunities involve actual jobs or apprenticeships. The National Hair & Beauty Federation welcomes the policy, noting its sector's power in providing skilled work. However, accessing these benefits effectively for small businesses remains a key question for the sector.
