Gov’s £3k youth employment grant ‘helps address major cost challenge for firms’

The move comes as apprenticeship starts among young people dropped 40% i the past decade and almost 1m young people are not earning or learning - up 248,000 between 2021 to 2024.

This “New Deal” includes a Youth Jobs Grant means businesses will receive £3,000 for every young person hired aged 18 to 24 who has been on Universal Credit and looking for work for six months.

From autumn this year, the existing ‘jobs guarantee’ will be expanded to a wider age range from 18 to 21 to 18 to 24-year-olds.

There will also be new foundation apprenticeships in hospitality and retail, with up to £2,000 for employers, aiming to support 16 to 21-year olds into work.

Celebrity chef and multiple pub operator Tom Kerridge said: “I welcome this announcement, which will provide amazing opportunities to young people looking to get into this industry and others, to learn a trade and earn along the way.

“I’ve trained apprentices in my restaurants and I know what a great start it gives them in their careers and these incentives will give our industry a great boost.”

Best-placed sector

The Government estimated the moves will support almost 1m young people and help deliver up to 500,000 opportunities to earn and learn.

On the announcement, UKHospitality chair Kate Nicholls said: “Hospitality is the sector best placed to help people back into work and these are important measures that remove barriers for businesses employing more people.

“The Government’s £3,000 Youth Jobs Grant is modelled on proposals UKHospitality submitted and I’m pleased this has been taken forward.

“Acting as the equivalent to an employer NICs holiday for businesses employing young people, the grant helps to address a major cost challenge for hospitality businesses.

“Including hospitality in foundation apprenticeships delivers on another of UKHospitality’s key asks and means there are now several supported pathways into work where employers are financially supported to reduce their costs.”

Furthermore, she highlighted the importance of ensuring everyone are able to grow in the sector.

Difference potential

“With employment costs rapidly increasing, engaging with the Government to introduce these incentives has been one of our priorities and can support businesses to help reduce the cost of employment,” Nicholls added.

“With some management apprenticeships streamlined, it’s positive our calls to retain sector-specific standards across catering and hospitality have been acted upon and those apprenticeships saved.

“These announcements show the benefit of working closely with business groups to design measures and policies that are practical, cost-saving and work for businesses.

“It’s crucial this approach continues and the Government ensures people of all ages have routes to learn and develop skills in hospitality.”

Fellow trade body the British Beer & Pub Association (BBPA) also responded to the announcement, welcoming measures that widen opportunities for young people entering the workforce while urging that the wider policy environment must also encourage firms to continue to be able to offer these opportunities.

A spokesperson for the trade body said: “Pubs and breweries have long been a gateway into the workforce, offering flexible roles, training and clear career progression for many young people starting out.

“Schemes that expand access to apprenticeships and early work opportunities have the potential to make a real difference, particularly when they are shaped alongside employers who understand the needs of the sector.

“At the same time, it is important the wider policy environment encourages businesses to keep creating these opportunities. If measures elsewhere make it harder to take on young adults and entry-level staff, it risks limiting the very opportunities that programmes aimed at reducing youth unemployment are designed to create.”