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Youth Contract 'must appeal to be businesses'

14 February 2012

Youth Contract "must appeal to be businesses" Posted by Editorial team

The government's Youth Contract could boost the number of young people on the payroll at UK firms, but it must be appealing to businesses, it has been argued.

Director-general of the British Chambers of Commerce John Longworth said it is important the £1 billion scheme does not put companies at risk.

Yesterday (February 13th), deputy prime minister Nick Clegg announced the fund would be used to pay employers who take on 18 to 24-year-olds £2,275 per member of personnel who from the Work Programme they hire.

If a recruit is only given a part-time position, the business will receive £1,137.50, so long as the employee is conducting duties for at least 16 hours a week.

While Mr Longworth said the scheme will help improve youth employment, he warned previously unemployed personnel could "pose a considerable risk" to firms and the contracts between the government and enterprises need to be as flexible as possible to protect against this.

He also highlighted the need for the payment to employers to be "reliable" and involve as little "administrative burden" as possible.

"This is especially important for smaller firms who need payment quickly to compensate for the initial costs of recruitment and basic training," the expert stated.

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