Apprenticeship plans for under 25s on Universal Credit risks undermining other young people looking for work
The government’s plans to provide apprenticeships to Universal Credit Claimants under 25 risks undermining other young people looking for work, say leading audit, tax and business advisory firm, Blick Rothenberg.
Robert Salter, a director at the firm, said: “The government’s plan to provide 350,000 on-the-job training placements for Universal Credit (UC) claimants under 25 risks undermining the efforts of other young jobseekers.”
He added: “Some 16- to 19-year-olds studying T Levels or BTECs are required to get work experience for as many as 8-10 weeks as a key part of their course. The government’s plan to offer employers funding if they accept young people on UC as apprentices means they will not be as likely to provide first-time jobs or work experience to students or other young people. Undermining one group of young people to help another is not a solution to the high rate of youth unemployment.”
Robert said: “Currently, around 40% of all apprentices drop out of their training programmes. The government needs to explain how they will ensure that apprentices on UC finish their full training programmes and that the £725m the chancellor, Rachel Reeves, has allocated to this scheme represents good value for taxpayers’ money.”
He added: “The government could support all young people to get into work by reversing course on decisions that have made it riskier for businesses to employ people. The increase in employers National Insurance Contributions (NIC), sharp rise in National Minimum Wage – particularly for those under 21, and employment law changes currently going through parliament, which will provide employees increased job protection and therefore risk increasing the costs employers face, are all making businesses reconsider hiring new staff.”