Budget Aims to Boost Youth Employment with £300m Training Package

Strategic Insights -

The UK government, facing intense pressure to tackle youth unemployment, is set to announce a £300m package in Wednesday's budget to fund training and work experience for young people. The package, aimed at helping the 974,000 young people currently unemployed, will include 50,000 new apprenticeships, with at least 8,000 posts in highly skilled trades. The government will also fund 80,000 extra places on a scheme that provides jobseeker's allowance during a two-month work placement.

Key Takeaways:

  • The UK government will announce a £300m package to fund training and work experience for young people, aiming to tackle the 974,000 who are currently unemployed.
  • The package will include 50,000 new apprenticeships, with at least 8,000 posts in highly skilled trades.
  • The government will fund 80,000 extra places on a scheme that provides jobseeker's allowance during a two-month work placement.
  • The coalition government has been criticized for canceling Labour's measures to help young people into work, including the Future Jobs Fund.
  • Labour's shadow work and pensions minister, Liam Byrne, has warned that youngsters face a "summer of anxiety" due to the overcrowded job market.
  • Unemployment has hit a 17-year high of 2.53 million, according to the latest official figures.
  • The government must heed the advice of OECD secretary general Angel Gurria, who urged the chancellor to "stay the course" with the programme of spending cuts and tax rises.
  • Expert estimates suggest that a 10% rise in oil prices can shave off 0.1% of GDP growth for the following two years.

Statistics:

  • 974,000 young people are currently unemployed.
  • £300m will be allocated for training and work experience programmes.
  • 50,000 new apprenticeships will be created.
  • At least 8,000 apprenticeships will be in highly skilled trades.
  • 80,000 extra places will be funded on the Jobcentre Plus scheme.
  • 2.53 million people are currently out of work, the highest level in 17 years.
  • The job market is expected to be overcrowded for a "summer of anxiety" as new school-leavers and graduates enter the market.

Sources:

  • George Osborne (chancellor of the exchequer)
  • Liam Byrne (Labour's shadow work and pensions minister)
  • Angel Gurria (OECD secretary general)
  • Bank of England governor Mervyn King
  • Official UK government statistics