A new scheme has been announced that means small businesses can now get £1000 grants if they take on young people for training schemes.
The scheme, which was announced by Chancellor Rishi Sunak, is a £111million package, and is part of his economic strategy for post-lockdown Britain.
Good New For Young People
Reports show that a huge wave of unemployment is set to hit the UK as businesses struggle to find the cash to pay their workers.
This scheme will be good news for young people, who will now have a better chance at landing traineeship roles in businesses – knowing that they also bring £1000 into a company as they train.
Details About The Grant
Small businesses that offer training for young people aged between 16 and 24 will be given cash ‘bonuses’.
That’s because three quarters of 18-24 year olds who complete a traineeship move on to employment, or further studies, within 1 year.
These ‘bonuses’ will be worth £1000 per person that a business trains, and will be capped at £10,000 per company.
That means that a business could essentially train 10 young people between 16 and 24, offer them training, and receive a £10,000 cash grant.
What Training Is Required?
A traineeship is a course that must include work experience.
The course must also help prepare young people for the workplace. It can last up to 6 months, and also include tuition if required. Employers must cover expenses and the cost of courses.
The training can be unpaid, and will open up avenues to apprenticeships and further full-time work.
Investing In The Future
Mr Sunak said:
“Young people are on the front line at risk of unemployment, so we’re backing them and the companies that they can learn from. We know traineeships work so we’re investing in their skills and our collective future.”
The combination of bringing in both a worker, and a cash grant, will be a big incentive to small businesses in the aftermath of lockdown.
However, businesses also need to remember the time and energy that goes into training a young person who has little, to no experience, in the workplace.
Always balance the cash grant incentive, with an informed decision about how much time you have to commit to each trainee.
Sometimes these situations work best when you spot ways that your business can grow. Train someone in a role, and provide an opportunity for them to work for you in the future.
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