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Nick Clegg urges bosses to back £1bn youth jobs plan Nick Clegg urges bosses to back £1bn youth jobs plan
(about 1 hour later)
Nick Clegg is urging firms to join a £1bn government scheme offering them cash to take on and train young people.Nick Clegg is urging firms to join a £1bn government scheme offering them cash to take on and train young people.
The deputy prime minister is writing to employers about the Youth Contract, which will provide a wage subsidy of £2,275 for 18 to 24-year-olds.The deputy prime minister is writing to employers about the Youth Contract, which will provide a wage subsidy of £2,275 for 18 to 24-year-olds.
The scheme, which gets under way in April, is aimed at curbing high rates of youth unemployment.The scheme, which gets under way in April, is aimed at curbing high rates of youth unemployment.
Mr Clegg said it would give a "significant boost", but Labour says the government is not doing enough.Mr Clegg said it would give a "significant boost", but Labour says the government is not doing enough.
More than one million 16 to 24-year-olds in the UK are currently unemployed.More than one million 16 to 24-year-olds in the UK are currently unemployed.
The three-year Youth Contract scheme is aimed at ensuring that this does not become a long-term problem.The three-year Youth Contract scheme is aimed at ensuring that this does not become a long-term problem.
It will give employers subsidies to take on a total of 160,000 18-to 24-year-olds for six months.It will give employers subsidies to take on a total of 160,000 18-to 24-year-olds for six months.
'Call to arms''Call to arms'
Plans also include:Plans also include:
  • 250,000 young people being offered work experience placements lasting up to eight weeks. These will be available to every unemployed 18-to 24-year-old who wants one and has been seeking work for three months or more.
  • A £50m programme for the 25,000 most disadvantaged 16-and 17-year-olds in England - those not in employment, education or training - to get them onto an apprenticeship or into work.
  • At least 20,000 additional incentive payments for firms in England to take on 16-to 24-year-olds in apprenticeships.
  • More support for young people at job centres, such as extra time with advisers and a careers interview.
  • 250,000 young people being offered work experience placements lasting up to eight weeks. These will be available to every unemployed 18-to 24-year-old who wants one and has been seeking work for three months or more.
  • A £50m programme for the 25,000 most disadvantaged 16-and 17-year-olds in England - those not in employment, education or training - to get them onto an apprenticeship or into work.
  • At least 20,000 additional incentive payments for firms in England to take on 16-to 24-year-olds in apprenticeships.
  • More support for young people at job centres, such as extra time with advisers and a careers interview.
In his letter to businesses, the deputy prime minister says: "Getting young people earning or learning is my top priority, and that's what the Youth Contract is going to do. This is a long-term boost to help business get young people into jobs before lasting damage is done.In his letter to businesses, the deputy prime minister says: "Getting young people earning or learning is my top priority, and that's what the Youth Contract is going to do. This is a long-term boost to help business get young people into jobs before lasting damage is done.
"Employers have a huge part to play in this and the subsidy we're announcing today benefits business and young people.""Employers have a huge part to play in this and the subsidy we're announcing today benefits business and young people."
He adds: "Today I'm writing out to thousands of employers of all sizes - from global corporations to small local firms - calling on them to look at what we're offering through the Youth Contract and sign up to offer jobs from April.He adds: "Today I'm writing out to thousands of employers of all sizes - from global corporations to small local firms - calling on them to look at what we're offering through the Youth Contract and sign up to offer jobs from April.
"This is a significant moment and a call to arms for businesses to offer long-term opportunities to young people who are out of work.""This is a significant moment and a call to arms for businesses to offer long-term opportunities to young people who are out of work."
John Longworth, director general of the British Chambers of Commerce, said: "Businesses are ready to do their bit, and the Youth Contract will provide a much-needed jobs boost for the young.
"But this scheme aims to help young people who are removed from the labour market, and could pose a considerable risk for employers. This is why contracts should be as flexible as possible to incentivise more firms to give these young people a chance."
Labour has said the initiative is a watered-down version of the last government's future jobs fund, which the coalition scrapped after coming to power.Labour has said the initiative is a watered-down version of the last government's future jobs fund, which the coalition scrapped after coming to power.
This initiative guaranteed under-24s out of work for six months a job or training and Labour says 50% of those who took part ended up with a permanent position.This initiative guaranteed under-24s out of work for six months a job or training and Labour says 50% of those who took part ended up with a permanent position.