Business
Teenagers, the CBI and grants for employers
22nd December 2011
Apprenticeship news, with Natalie Austin, of WBTC
Last month I outlined the crisis that is youth unemployment and what it means for us all. This month I’d like to describe a glimmer of good news that might brighten the prospects for employers and young people alike.
CBI proposal for young people
In November the CBI called on the Government to provide financial incentives for employers to take on UK teenagers. John Cridland the Director of the CBI told Sky News: “If we gave employers £1,500 as a cash subsidy to take on a 16-year-old, they might take on a 16-year-old with lack of work experience and sometimes poor qualifications, rather than a migrant worker or a mature worker who has got those skills. So let’s get that young person up the beauty parade, let’s give them a chance to get a job today, not in five years’ time.”
Grants for employers to take on apprentices
Mr Cridland’s call to provide cash to employers is echoed by the experience in 2010 when there were cash grants available for SMEs to employer apprentices. Grants from £1,500 – £2500 were paid to local employers who took on and supported local 16-18 year olds. Evidence suggests that grants helped to boost the creation of about 30 per cent more apprenticeships.
European Social Funding for employers in 2012
The European Social Fund (ESF) often finances initiatives such as apprenticeship grants for employers. There is a new round of funding that will be available in 2012 and the latest news is that there will be cash help for employers who would like to take on an apprentice but at present find it difficult to do so.
While it is still early in the process, experience from 2010 showed that the grant fund is limited and employers who wish to take advantage need to act fast to benefit. No details have been released but it is expected that the grants will be payable directly to employers via an approved apprenticeship training provider.
Allaying employer concerns and about ‘hiring and firing’
Apprenticeships provide a flexible framework, especially for small employers, to provide opportunities to young people. Apprenticeships can help employers by
n Accessing the apprenticeship minimum wage rather than the national minimum wage
n Creating conditions of employment linked to the progress and achievement of an apprenticeship qualification
If you would like advice and guidance then please do not hesitate to contact me on (01635) 35975 or Natalie@wbtc-uk.com
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