The chancellor has announced a £2bn ‘kickstart’ scheme, with companies receiving funds to create jobs for youngsters at risk of long-term unemployment.
These will be new jobs, as the firms will have to prove they are additional positions, Rishi Sunak confirmed in his summer economic update today.
The government will directly pay firms wages for these young employees for six months. It will fund 25 hours’ work at the national minimum wage, resulting in a grant of some £6,500.
The firms can apply for the scheme from next month.
The chancellor has urged all firms to hire as many ‘kickstarters’ as possible and said there will be no cap on this spending.
The Confederation of British Industry welcomed the scheme but urged the government and business to act fast to deliver it.
CBI director-general Dame Carolyn Fairbairn says: “By investing in skills, the government can lessen the potential scarring impact of the pandemic for the next generation.
“Business and government must now work to deliver the kickstarter scheme simply and at speed.
“There can be no time lost in preparing young people who are entering one of the toughest jobs markets we’ve seen in decades.”
