Companies to be Offered £1,000 to Hire Young People

Written by: Keith Tully

Updated: 6th July 2020

workers looking at computerCompanies in England could soon be getting payments of £1,000 to hire young people as trainees as part of an effort to revitalise the economy in the wake of coronavirus.

Reports suggest that chancellor Rishi Sunak will reveal details of a significant incentives programme later this week in what’s being described as an ‘emergency budget’ scheduled for Wednesday July 8.

The ambition is apparently to use direct government subsidies to encourage businesses to create new positions for young people who are looking for work in the second half of this year.

Employers will be able to spend the £1,000 payments from government in any way they wish if it contributes to training or upskilling members of their workforce in some way.

Each employer will be eligible to claim up to £10,000 by hiring up to 10 individuals as new trainees, with those people needing to be aged between 16 and 24 to qualify.

Expanding the scope of traineeships is part of the government’s plan to help the UK economy recover from the huge downturn in output and activity seen since the onset of the coronavirus crisis in March.

Young people are among those thought most likely to have lost their jobs in recent months, with so many under-30s relying on the hard-hit hospitality sector for their employment.

Traineeships, incentivised by £1,000 pay outs to employers, should go at least some way towards helping young people back into the workforce in the coming months.

Support for trainee programmes will be introduced in England from September, while the devolved administrations in Scotland, Wales and Northern Ireland are to be given funds to pay for similar initiatives.

Meanwhile, a sum of around £1.57 billion has been promised by the government in support of the UK’s arts sector, within which a great many businesses have been struggling to remain viable in the context of coronavirus and the lockdown.

Many theatres, concert halls and other live arts venues have been threatened with the prospect of insolvency having lost so much of their revenues due to the virus situation.

The government’s funding boost for the arts is expected to be made available to eligible operators in the coming months via emergency grants and loans.

Keith Tully

Keith Tully

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Keith has been involved in Business Rescue since 1992, during which time he’s worked for both independent and national firms. His specialties include company restructuring matters and negotiating with HMRC on his clients behalf.

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