Government offers businesses £3,000 of funding for each young person employed

The Youth Jobs Grant, which launches tomorrow (30 June), will give business £3,000 for every person aged 18 to 24 they take who has been on Universal Credit and looking for work for six months or more.

The jobs must be at least 25 hours per week and must last at least 4 months to be eligible for a Youth Jobs Grant.

The £3,000 will be paid in two installments with £1,800 paid in the second month of the young person’s employment and £1,200 paid in the fifth month.

Launching the scheme the government said it will give employers access to a pipeline of young people actively seeking employment, reduce their employment costs and help them build a loyal, motivated workforce.

To apply for the Youth Jobs Grant, employers complete a simple online application. Once employment and earnings have been verified by the Department of Work and Pensions, they will be eligible to receive the funding.

Announcing the scheme, which is open to SMEs as well as large companies, Work and Pensions Secretary Pat McFadden said: “Young people want the chance to work, earn, learn and build a better future.

“That’s why the government is backing employers large and small with a £3,000 grant to take a chance on young people who are ready to work and need that first step on the ladder, and subsidised work for those who face more challenges.

“Working with employers, we can turn young people’s lives around.”

Other government incentives designed to encourage the employment of young people include an exemption from employer National Insurance contributions for employees under 21, or for apprentices under 25 earning below £50,270.

Further information on how to apply for the Youth Jobs Grant can be found here from 30 June.