Scrap the wait time for new Youth Jobs Grant
Date published:
The Chamber’s latest column for The Journal by Rachel Anderson, Assistant Director of Policy.
I got a lesson in frustration last week.
I met Liam, he wants to be an engineer, that’s all he wants. He’s done everything right, studied hard, got on a good course backed by a major company, he’s enthusiastic, he’s bright, articulate – but there is no job for him, he can’t get a chance anywhere.
I met him at an industry networking event. In desperation, he’d decided that he needed to go where the companies were, talk to as many as possible, and ask someone, anyone, to give him his first break.
Liam isn’t alone – a scroll through LinkedIn will see lots of young people putting themselves out there, asking for a chance. When you meet them in real life, as I did with Liam, you can see their weary frustration moving into hopelessness, and it is heartbreaking.
So, what is the source of the problem?
It is that old catch-22: lack of experience. Liam has all the capabilities on paper, but no on-site experience. To get on site, he needs experience he can only gain on site. Companies are reluctant take a chance on him because they haven’t got the time and resources to supervise him. And this is where my frustration comes in. The government has slowly recognised this is a problem, and we got an announcement this week from Pat McFadden, the Work and Pensions Secretary, about creating a new Youth Jobs Grant, which will give employers a subsidy of around £3,000 if they take on a young person who has been out of work for six months or more. It’s a good move, and will help employers, but why wait six months?
Surely incentivising employers to take on anyone between 18 and 24 pays off in the long term. I’d also say that £3,000 is a drop in the ocean – it is only around one and a half months’ wages for responsible employers paying the living wage.
The government is also going to create roles in the public sector to guarantee a six month job if an individual has been looking for work for 18 months – it is a start and will help bridge some of that experience gap, but details are scant at the moment on what that experience will actually look like.
The government must look to go further. Scrap the six month wait, increase the subsidy and work with industry to create proper, structured placements. Liam’s talent shouldn’t go to waste because the policy doesn’t match the problem.