Government to offer companies £1,000 trainee boosts
Business / Mon 6th Jul 2020 at 11:18am
THE government will offer bonuses of £1,000 for every trainee they hire in a bid to boost jobs for young people amid the coronavirus crisis reports the Mirror.
Businesses offering new traineeships in England will receive the bonus per trainee under the £111 million scheme.
Chancellor Rishi Sunak will announce the move for 18-24 year olds on Wednesday as he unveils an economic strategy to deal with the aftermath of the Covid-19 pandemic.
It comes as new data from the Centre for Retail Research revealed more than 24,000 jobs have already been lost at high street retailers in the first half of 2020, while almost 32,000 positions are still at risk of being permanently axed if more stores close.
As part of a traineeship initiative, which lasts from six weeks to six months, young people receive maths, English and CV writing training as well as guidance about what to expect in the workplace, the Treasury said.
A Treasury spokesperson said: “The Government are making available three times more funding to providers this year to pay for tripling the number of trainees, and also increasing the funding providers receive for training.
“Businesses will also get a £1,000 bonus payment from the Government for every trainee they offer a work experience placement to.
“Employers who are new to providing trainees with work experience, or growing their existing offer, will also be eligible for the payment.
“Evidence shows three-quarters of 18 to 24-year-olds who complete traineeships move on to employment or further study within 12 months.”
The expanded scheme will be in place in England from September 2020.
The Government said it will also provide £21 million to the devolved administrations in Scotland, Wales and Northern Ireland for similar initiatives.
Also, work academies are to get a £17 million investment.
Funding is being provided for more than 30,000 extra places at sector-based work academies, the Treasury said.