Giving young people a better start
Today (8 July), Chancellor Rishi Sunak outlined his ‘Plan for Jobs’ of how the Government will boost job creation in the UK, the second part of a three-phase plan to protect the UK economy following the impact of coronavirus. Part of this plan is to support jobs by focusing on skills and young people through Government incentives for employers taking on trainees and apprentices.
“Our plan has a clear goal: to protect, support and create jobs. It will give businesses the confidence to retain and hire. To create jobs in every part of our country. To give young people a better start. To give people everywhere the opportunity of a fresh start.”
Employment Support Scheme
A total of £1.6 billion will be invested in scaling up employment support schemes, training and apprenticeships to help people looking for a job. Young people, who are amongst the worst hit by the crisis, will benefit from this. This includes:
- Businesses will be given £2,000 for each new apprentice they hire under the age of 25. This is in addition to the existing £1,000 payment the Government already provides for new 16-18-year-old apprentices and those aged under 25 with an Education, Health and Care Plan.
- A £111 million investment to triple the scale of traineeships in 2020-21 ensuring more young people have access to high quality training.
- £17 million of funding to triple the number of sector-based work academy placements in 2020-21.
- Nearly £900 million to double the number of work coaches to 27,000.
- Over a quarter of a million more young people to benefit from an extra £32 million investment in the National Careers Service.
Source: https://www.gov.uk/government/news/rishis-plan-for-jobs-will-help-britain-bounce-back
Welcome news!
Jacqui Oughton, Group Chief Operating Officer, Shaw Trust
Traineeships
The government will provide an additional £111 million this year for traineeships in England, to fund high quality work placements and training for 16-24 year olds. This funding is enough to triple participation in traineeships. For the first time ever, the government will fund employers who provide trainees with work experience, at a rate of £1,000 per trainee. The government will improve provision and expand eligibility for traineeships to those with Level 3 qualifications and below, to ensure that more young people have access to high quality training.
What are traineeships?
Traineeships are employer-led programmes for 6-12 weeks that are tailored to your business requirements and are suitable for any industry from health and social care, to retail, hospitality and construction. They provide young people with key work experience and skills that enable them to progress into an apprenticeship.
Apprenticeships
From 1 August – 31 January 2021, employers will receive incentives to recruit an apprentice.
The Government has introduced a new payment scheme for employers in England for each new apprentice they hire from 1 August to 31 January 2021.
- £3,000 for 16-18 year olds (£2,000 as announced plus the additional £1,000 the Government already provides)
- £2,000 for 19-24 year olds
- £1,500 for 25+
What are apprenticeships?
Apprenticeships are a cost-effective training solution for new or current staff lasting from a 12-30 months and cover a range of industries from education, to construction, to IT and marketing available across different levels. We provide an easy 5-step recruitment process following a needs-analysis that focuses on your current, and future, staff training and development needs. Note: Incentive doesn’t apply to current staff.
Contact
Register your interest today with our engagement team and we will keep you fully informed as more information becomes available.
Levy payers please contact Maria Georgiou, Regional Account Manager on 07947 955499 or maria.georgiou@ixionholdings.com
Non-levy employers please contact Steven Vasiliou, Employer and Business Engagement Manager on 07507 558470 or steven.vasiliou@ixionholdings.com
Not sure if you are levy payer or not? Find out more about apprenticeship funding and the levy.
Response from Shaw Trust:
The Chancellor’s announcement of a three-point jobs plan is a strong and timely response to the devastating labour market impacts of Covid-19. In particular, the ‘kick start scheme’ for young people, expansion of traineeships, apprenticeships and the National Careers Service – as well as additional funding for the DWP – will make a tangible difference to the lives of adults and young people impacted by Covid-19. Shaw Trust stands ready to play our part in getting people back to work, and up and re-skilling them for new roles and careers.