Companies will get a £1,000 cash bonus for every young person they hire

Companies will get a £1,000 cash bonus for every young person they hire as Rishi Sunak prepares to unveil a £111million boost for the traineeship scheme in ‘mini-budget’

  • Employers will be given a £1,000 cash bonus for every 16-24-year-old hired
  • The cash is to be capped at 10 employees – or £10,000
  • First time firms will be paid direct government subsidies for hiring youngsters  
  • Chancellor will unveil the plans as part of his ‘mini-budget’ on Wednesday  

Companies will get a £1,000 cash bonus for every young person they hire as trainees, Rishi Sunak will announce this week.  

In his ‘mini budget’ on Wednesday, the Chancellor will unveil a £111million boost for the traineeship scheme.

As part of the plans, employers will be given £1,000 for every young person aged between 16 and 24 that they hire, up to a maximum of ten trainees, or £10,000.

It is the first time firms will be paid direct government subsidies for hiring youngsters. 

Mr Sunak told The Daily Telegraph: ‘Young people are on the front line at risk of unemployment, so we’re backing them and the companies that they can learn from. 

Chancellor of the Exchequer Rishi Sunak said: ‘Young people are on the front line at risk of unemployment, so we’re backing them and the companies that they can learn from’ (pictured outside Downing Street)

‘We know traineeships work so we’re investing in their skills and our collective future.’   

As part of a traineeship initiative, which lasts from six weeks to six months, young people receive maths, English and CV writing training as well as work placements.

The extra funding will triple the number of places on the programme that is designed to give those aged between 16 and 24 the skills to secure a job. 

A Treasury spokesman said: ‘The Government are making available three times more funding to providers this year to pay for tripling the number of trainees, and also increasing the funding providers receive for training.

‘Businesses will also get a £1,000 bonus payment from the Government for every trainee they offer a work experience placement to.

‘Employers who are new to providing trainees with work experience, or growing their existing offer, will also be eligible for the payment.

It is the first time firms will be paid direct government subsidies for hiring youngsters (stock image)

It is the first time firms will be paid direct government subsidies for hiring youngsters (stock image)

‘Evidence shows three-quarters of 18 to 24-year-olds who complete traineeships move on to employment or further study within 12 months.’

The scheme is also being extended to A-Level pupils and will be in place in England from September 2020.

The Government said it will also provide £21 million to the devolved administrations in Scotland, Wales and Northern Ireland for similar initiatives.

Also, work academies are to get a £17 million investment.

Funding is being provided for more than 30,000 extra places at sector-based work academies, the Treasury said.

Read more at DailyMail.co.uk