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Clegg calls for review of schemes to help jobless 18-24 year-olds Clegg calls for review of schemes to help jobless 18-24 year-olds
(2 months later)
Nick Clegg effectively admitted that his plan to tackle youth unemployment through a wage subsidy scheme has failed when he announced a cross-government review into youth unemployment.Nick Clegg effectively admitted that his plan to tackle youth unemployment through a wage subsidy scheme has failed when he announced a cross-government review into youth unemployment.
In November 2011, Clegg announced plans for a £1bn youth contract, including wage subsidies for firms taking on workers aged 18-24, aimed at areas of highest youth unemployment. He said if an employer joined the scheme half of the 18-24-year old's minimum wage would be paid by the state.In November 2011, Clegg announced plans for a £1bn youth contract, including wage subsidies for firms taking on workers aged 18-24, aimed at areas of highest youth unemployment. He said if an employer joined the scheme half of the 18-24-year old's minimum wage would be paid by the state.
In spring 2012 as the scheme was fully launched, he adjusted its target group so employers would be offered the subsidy of £2,275 per person after someone aged 16-24 was out of work for six months, instead of nine months. He said 500,000 placements in the private sector would be available. The government said at the time they hoped employers would rush to use the scheme.In spring 2012 as the scheme was fully launched, he adjusted its target group so employers would be offered the subsidy of £2,275 per person after someone aged 16-24 was out of work for six months, instead of nine months. He said 500,000 placements in the private sector would be available. The government said at the time they hoped employers would rush to use the scheme.
Almost 1.65 million 18-24 year olds were economically inactive (not in work and not looking for work) in February to April 2013, an increase of 24,000 on the previous quarter but 68,000 lower than a year ago.Almost 1.65 million 18-24 year olds were economically inactive (not in work and not looking for work) in February to April 2013, an increase of 24,000 on the previous quarter but 68,000 lower than a year ago.
But at the CBI's president dinner Clegg, without making a direct reference to his previous scheme, promised a Cabinet Office-led review into help for 18-24 years olds, saying the current system was confused. He appeared to favour a single nationally integrated scheme for large employers.But at the CBI's president dinner Clegg, without making a direct reference to his previous scheme, promised a Cabinet Office-led review into help for 18-24 years olds, saying the current system was confused. He appeared to favour a single nationally integrated scheme for large employers.
He told the CBI that urgent reform was needed on the range of skills, training and employment support available to prepare young people for a competitive working life. "Sat at home, trying to figure out what to do with the rest of their life, the average school leaver doesn't have a clue about which government departments or agencies look after the schemes that are out there to help them," he said.He told the CBI that urgent reform was needed on the range of skills, training and employment support available to prepare young people for a competitive working life. "Sat at home, trying to figure out what to do with the rest of their life, the average school leaver doesn't have a clue about which government departments or agencies look after the schemes that are out there to help them," he said.
"What they do know is that to succeed they need a job and that if they are to give themselves a fighting chance of getting a good one they need some skills and training. But right now it's too easy for those young people who don't think university is right for them to get lost in the maze of different employment and skills programmes available and never find the advice, support and options they need."What they do know is that to succeed they need a job and that if they are to give themselves a fighting chance of getting a good one they need some skills and training. But right now it's too easy for those young people who don't think university is right for them to get lost in the maze of different employment and skills programmes available and never find the advice, support and options they need.
"It's the same for businesses looking to take on young people. I know that individually many of you have amazing programmes in place to employ and promote young people in your companies, but that even before the economic crisis, you were frustrated by the complex and confusing web of Government initiatives, bodies and agencies that exists to help you."It's the same for businesses looking to take on young people. I know that individually many of you have amazing programmes in place to employ and promote young people in your companies, but that even before the economic crisis, you were frustrated by the complex and confusing web of Government initiatives, bodies and agencies that exists to help you.
"Those employers that do make it through the system find the programmes available useful. But again too many employers lose their way. They're put off either because they can't find what they want in their area or because they find it just too complicated to get involved.""Those employers that do make it through the system find the programmes available useful. But again too many employers lose their way. They're put off either because they can't find what they want in their area or because they find it just too complicated to get involved."
In June explaining his previous plans to extend the youth contract offer to those out of work for just six months, Clegg told a CBI jobs summit saying: "Three months can make all the difference. When you feel like your banging your head against a brick wall, when you live in an area where opportunities are already few and far between, another 12 weeks of rejection letters, of being cut off, of sitting at home waiting, worrying, that can seriously knock the stuffing out of you, making it extremely difficult to pick yourself up."In June explaining his previous plans to extend the youth contract offer to those out of work for just six months, Clegg told a CBI jobs summit saying: "Three months can make all the difference. When you feel like your banging your head against a brick wall, when you live in an area where opportunities are already few and far between, another 12 weeks of rejection letters, of being cut off, of sitting at home waiting, worrying, that can seriously knock the stuffing out of you, making it extremely difficult to pick yourself up."
The CBI had complained at the time there were 47 different employment initiatives for employers in England alone, which offer funding and support for businesses taking on and training young unemployed people. Busy firms need the whole process to be easier to navigate, the group said.The CBI had complained at the time there were 47 different employment initiatives for employers in England alone, which offer funding and support for businesses taking on and training young unemployed people. Busy firms need the whole process to be easier to navigate, the group said.
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