Firms To Get £3,000 Per Hire as Pat Mcfadden Announces Youth Jobs Grant

Work and Pensions Secretary pat mcfadden is set to announce a package of measures including a Youth Jobs Grant that will pay firms £3, 000 for hiring long-term unemployed 18-24-year-olds, part of a wider £1bn pledge aimed at tackling youth unemployment.

Pat McFadden Announces Youth Jobs Grant

The government says businesses will receive £3, 000 for every person aged 18 to 24 they employ who has been seeking work for six months or more. Small and medium-sized firms will receive £2, 000 for every new apprentice they take on, the plan states.

Ministers have set a target of creating 200, 000 jobs and are pledging £1bn in funding across several initiatives. Separately, some 60, 000 people are expected to be directly supported by the proposals.

pat mcfadden said the measures would give “life-changing opportunities to young people” and would “significantly reverse the increase we inherited in those not in education, employment or training. ” He added that the government was “focusing funding where it’s needed most and giving employers the flexibility and support they’ve asked for. “

The announcement will also expand an existing jobs guarantee so that young people on Universal Credit who have been looking for work for 18 months will be assured a six-month job; the current age range for the guarantee is 18-21 and it will be extended up to 24-year-olds.

Political Reaction and Employment Rules

The measures have drawn backing and criticism across the political spectrum. The prime minister said the reforms “underpin our ambition to create an economy that works for everyone, closing the skills gap and supporting more young people into meaningful employment. ” A leading chef backed the incentives, saying “these incentives will give our industry a great boost. “

The Conservatives pointed to two recent policy changes they say affect employers and young jobseekers: the Employment Rights Act, which reduces the qualifying period for a claim of unfair dismissal to six months from a longer prior threshold, and a rise in national insurance contributions on employers. Critics argued those factors have had an impact on young people looking for work.

The Conservatives also outlined plans to cut business rates for many high street businesses and to roll back legislation scheduled to take effect later this year. The opposition’s shadow work and pensions spokesperson said “the best way to tackle youth unemployment is to back businesses to create jobs, not tax them out of existence to fund benefits and subsidies. ” Labour had previously pledged in its manifesto to offer all workers the right to claim unfair dismissal from their first day in a job.

Scope, Numbers and Next Steps

The proposals target a group that has grown substantially: the number of young people not in education, employment or training neared one million in the final quarter of last year. Ministers are framing the package as a means to reverse that trend and to close skills gaps.

Key figures in the plan are fixed in the announcement: £3, 000 payments for qualifying hires aged 18-24, £2, 000 for new apprentices taken on by small and medium firms, a stated creation target of 200, 000 jobs, and a pledged £1bn in funding. Work and Pensions Secretary Pat McFadden will make the formal announcement on Monday, when further operational details and rollout timing are expected to be made public.