Youth unemployment has been a central concern of the UK government’s policy agenda and is the focus of their latest multimillion-pound initiative. This year alone, they will introduce 150,000 new training and work experience placements. This isn’t simply an ambitious wishlist – the plan invests £725 million to address a long overdue and critical concern. It’s one important step toward reaching the nearly one million young people who are not earning and not learning.
From January to March 2024 we’ll be cascading the placements regionally in six waves throughout the UK. Each of these areas is currently experiencing a spike in youth unemployment. Each placement will be completely subsidised for 25 hours a week, paid at the legal minimum wage. The creation of a one-stop hub is welcome, as is the government’s desire to combat an alarming drop in young people starts in apprenticeships. This issue is down almost 40% over the past 10 years.
We discussed that the government is looking to incentivize SMEs through a range of measures to join this effort. To achieve this, they’ll pay for all apprenticeships for people below the age of 25. Furthermore, the burdensome requirement that these small businesses take on 5% of the cost to set up an apprenticeship program will be dropped.
Of the whole funding pot, £140 million is for a pilot program. This state-matched federal program is designed to get young people into the workplace and working in registered apprenticeship. We need local mayors to have as much discretion as possible over how they’ll use these funds to do the most to support youth in their communities.
In addition, beginning in April of 2024, we will be providing 55,000 six-month placements. These slots represent the limited funding available for young people aged 18 months or more on benefits. Starting in Spring 2024, we intend to start offering aileron short courses. These courses will have a particular emphasis on future and emerging skills sectors around artificial intelligence, engineering and advanced digital skills, co-created with the defense sector.
Newly confirmed Prime Minister Sir Keir Starmer is expected to fill in the details of this incentive-based scheme when he delivers his first leader’s speech on Monday. He has made clear that the initiative is imperative for helping to reshape the future of young people’s employment prospects.
“For too long, success has been measured by how many young people go to university.” – Sir Keir Starmer
Yet despite this lukewarm approach to enforcement, the initiative has still drawn criticism from both supporters and opponents. Helen Whately has voiced concerns regarding Labour’s commitment to growth and job creation, stating that they have “no plan for growth, no plan to create real jobs.”