Clegg’s £1bn scheme to give 'hope' to jobless young people
A £1bn plan to make subsidised work and training placements available to young people will ‘provide hope’ to thousands, according to Deputy Prime Minister Nick Clegg.
Under the scheme, employers will receive subsidies worth over £2,000 to take on 160,000 18- to 24-year-olds, for six months, over a three year period. Mr Clegg was interviewed this morning on Radio 4’s Today programme, and was asked how the government would pay for the youth contract scheme. Mr Clegg said that that the coalition was contemplating a ‘number of savings’ in order to provide the money. These are likely to be announced by Chancellor George Osborne in his Autumn Statement on Tuesday.
Despite Labour’s concerns that finding the money for the scheme will lead to a squeeze on tax credits for the poorest families, the government says that the £1bn is new money that will not require a reallocation of existing funds. Certain expectations will be placed on those taking part, including the cessation of benefits for any participants who subsequently drop out of a work experience placement or subsidised job.
Youth unemployment hit a record high of 1.02 million in the three months to September, and one in five young people between the ages of 16 and 24 are not currently in full-time employment, education or training (NEET). The government is under increasing pressure to address the problem of youth unemployment.
According to Mr Clegg, the youth contract scheme is part of the government's commitment to ensure the next generation does not ‘pay the price’ of economic troubles that are not of their making. He told the Today programme; ‘It provides hope to the many, many young people who, at the moment, are feeling very anxious and uncertain about their future.’
Other proposals to support unemployed young people include:
- An additional 250,000 young people to be offered work experience placements lasting up to eight weeks. Available to every unemployed 18- to 24-year-old who wants a placement and who has been seeking work for three months plus.
- A £50m programme for the 25,000 most disadvantaged 16-and 17-year-olds in England who are NEET, to get them onto an apprenticeship or into work.
- At least 20,000 additional incentive payments for firms in England to create apprenticeships for 16- to 24-year-olds.
- More support for young people at job centres, such as extra time and support from advisers and a careers interview.
Find out more about how the European Social Fund is supporting young people into work and training.










