The Department for Work and Pensions has confirmed "needed" £2,000 payouts for small and medium-sized businesses that take on young apprentices, as part of a joint effort with the Labour government to tackle youth unemployment. The payments will benefit claimants born after 2001, specifically those under 25.
Details of the £2,000 payout scheme
Work and Pensions Secretary Pat McFadden announced that from autumn, SMEs will receive £2,000 for every young apprentice they hire who is under 25, with the government covering the full training cost. McFadden stated: "The decline in youth apprenticeship starts under the last government has kicked the ladder away from too many young people. We are reversing that, and expanding opportunities for young people, by tilting funding towards the apprenticeships which will enable them to access high-quality training and those first jobs on the career ladder."
Labour's broader youth employment strategy
The payout scheme is part of Labour's 'new deal for young people', which also includes plans to crack down on poor-quality university courses and shift investment towards apprenticeships. A recent Milburn report warned that around 1 in 7 young people not in employment, education or training hold a university degree, highlighting the need for alternative pathways.
Government ambition for higher-level learning
The government aims for two-thirds of young people to participate in higher-level learning. Education Secretary Bridget Phillipson said: "Young people making choices about their future deserve to know that the investment they are making will lead to real opportunities and stable careers. For some that will mean going to university, and we are making this more accessible regardless of background, but for others it will mean technical or vocational routes. By raising standards and cracking down on abuse of student loans we’ll ensure our world-leading universities deliver real value for students and the taxpayer."
