The Chancellor, Rachel Reeves, has set out the Government’s plans to tackle long-term youth unemployment at the Labour Party conference in Liverpool. According to the latest data, it is estimated that one-in-eight 16–24-year-olds are not in education, employment or training, which equates to around 948,000 young people.
Under a new initiative, young people out of work, education or training for more than 18 months will be offered guaranteed paid work placements to give them practical experience in the workplace and a chance to prove themselves. The aim is that the scheme will equip them with the necessary skills to gain a full-time job.
The Chancellor said that the Government will work with businesses in the run-up to the Budget in November, when details of the scheme will be unveiled. It is not yet clear what employment status the young people participating in the scheme will have or what the rules will be for the organisations that engage them. Nor has it been announced yet how the scheme will be funded but there is likely to be some form of subsidy provided by the Government, with employers covering at least some of the wages for job placements.
Tina McKenzie, Policy Chair for the Federation of Small Businesses said: "Key to getting the details right is making sure there is a backstop offer to those who are now over-25, particularly those with health challenges; that young people out of work for health reasons are not excluded through misguided double funding rules; and that small businesses are enabled to play a full role in the delivery of the scheme."
