Prime Minister Sir Keir Starmer has announced a new plan to help businesses recruit young people who have been out of work for at least six months. The youth jobs grant will offer firms £3,000 to hire an 18 to 24-year-old who has been on universal credit for six months or more, in a bid to help the more than a million young people not in employment, education or training (Neet).
Downing Street roundtable with hospitality leaders
Sir Keir hosted a No 10 roundtable with hospitality industry leaders, including representatives from Burger King, KFC and Costa Coffee. Work and Pensions Secretary Pat McFadden was also present. The Prime Minister said: “From tomorrow we’re announcing a £3,000 incentive to businesses to take young people who’ve been out of work for six months and give them a job.”
University not the only route to success
Sir Keir argued that university should not be seen as the only route to success, adding: “It is crucial that when we say every young person should go as far as their talent and ability will take them, we mean it.” He also noted his personal stake: “I have a vested interest, I should declare, not just as Prime Minister – I’ve got two teenage children. My son is 18 tomorrow, and therefore these are live discussions in our household.”
Jobs guarantee and anti-poverty strategy
The youth jobs grant will go hand in hand with the jobs guarantee, which funds six months’ part-time employment for those out of work for at least 18 months. Sir Keir described the guarantee as “probably the most single effective way to help people into work.” The measures are part of a broader strategy to lift children out of poverty and help young people into work, including free breakfast clubs, expansion of free childcare to 30 hours a week for eligible working parents in England, and lowering the target number of university entrants to encourage apprenticeships.
Cost and impact analysis
A report from the Resolution Foundation think tank estimated the youth jobs grant will create 2,800 additional jobs at a cost of around £36,700 each. It also found the jobs guarantee comes in at roughly £38,000 per additional job, making it three-and-a-half times cheaper than scrapping employer national insurance contributions.
