Originally written by Timothy Adler on Small Business
UPDATED: Rishi Sunak will give small businesses £2000 grants per trainee if they take on young people for training schemes.
The scheme, which was announced today (Wednesday) as part of the chancellor’s economic Summer Statement, will throw ens of thousands of young people a lifebelt against the coming tsunami of post Covid-19 unemployment.
The Bank of England has predicted that unemployment will rise to 10 per cent this year, as employees are weaned off the Coronavirus Job Retention Scheme from August.
>See also: IR35 freelance tax changes will go ahead in April 2021 – are you ready?
Small businesses that offer training for young people aged between 16 and 24 will be given cash “bonuses” of grants worth £2000 per youth up to a maximum of £10,000 per firm.
This unpaid on-the-job training is seen as a gateway to an apprenticeship and, ultimately, full-time work.
The £111m scheme is the first-time small businesses will receive direct government subsidies for taking on trainees.
A Treasury spokesman said businesses would get a £2000 bonus payment “for every trainee they offer a work experience placement to”, and employers who were “new to providing trainees with work experience will also be eligible for the