Voluntary sector umbrella body NCVO has welcomed the creation of a £1 billion Government fund to tackle youth unemployment but stresses that the voluntary sector must be involved in its delivery.
Under the Youth Contract, announced by Nick Clegg on 25th November, 410,000 new work and training places will be found for 18 to 24-year-olds from next April over a three-year period. This includes wage subsidies worth £2,275 handed to employers to take on 160,000 young people through the Work
Programme.
Each of these ‘wage incentives’ will be worth half of the youth national minimum wage and last for six months. They will be available for those young people who need the most help after three months, and all of those who have been on Jobseeker’s Allowance for nine months. Mr Clegg also said the contract would offer a work experience placement of up to eight weeks for every unemployed 18 to 24-year-old that wants one. Extra funding for apprenticeships and a £50 million programme to help persistently NEET 16 and 17-year-olds (not in employment, education or training) will be on offer too.
Under the plans, young people who fail to sign up to the Youth Contract will be considered for ‘mandatory work activity’, while those who drop out of work experience or jobs without good reason will lose their benefits.
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