FBUK has welcomed a package of measures aimed at creating 200,000 jobs for young people – addressing the increasing numbers who are not in employment, education or training.
The announcement, which is backed by £1billion of extra funding is aimed at reversing the trend of young people neither earning nor learning, and to transform apprenticeships. Almost one million young people aged between 16-24 are classified as not in employment, education or training according to the latest data. Of these, more than half are classed as economically inactive (not looking for work).
Measures announced by the Government include:
- Youth Jobs Grant: Businesses will receive a hiring incentive worth £3,000 for each young person they employ aged 18-24 who has been on Universal Credit and looking for work for six months.
- Apprenticeship incentives: £2,000 for small and medium-sized enterprises (SMEs) in England when they take on new apprentices aged under 25.
- Expanding the Jobs Guarantee: to 22–24-year-olds, meaning all eligible 18–24-year-olds across Great Britain will benefit from a fully funded six month guaranteed paid employment opportunity.
- Further reforms to the Growth and Skills Levy to prioritise young apprentices
New research from Family Business UK shows the importance of flexible, lifelong skills training to family businesses:
- A quarter (26%) of family businesses view labour and skills shortages as the main barrier to growth.
- A third of (34%) family businesses feel that more flexible training options for upskilling existing staff would better meet the needs of their family business.
Responding to the announcement, Neil Davy, Chief Executive Officer, FBUK, said:
“A shortage of skilled workers is a key barrier to growth for more than a quarter of family businesses and a third believe that more flexible training options are needed to help build a future-ready workforce. So, we welcome today’s announcement of an additional £3,000 incentive for family businesses that take on 18–24‑year‑olds who have been on Universal Credit for more than six months.
“We also back the move to make short, bite‑sized training courses accessible through the new Growth and Skills Levy. Family firms have often struggled to utilise funding through the previous Apprenticeship Levy, and this change is one we have been calling for.
“It is essential the apprenticeship system remains flexible enough for family businesses to support the next generation of the workforce – including those who may become future leaders. We are keen to work with the Government on the implementation of these initiatives to ensure the needs of all family businesses – and workers – are met.”