Tax breaks urged to tempt companies to take on young

BUSINESS lobby group the Confederation of British Industry (CBI) is calling for tax breaks to encourage companies to take on more young people as youth unemployment hits record levels.

The CBI said with one-in-five young people currently out of work, the Government should launch a “Young Britain Credit” to boost youth employment.

The credit would be worth £1,500 for firms taking on an unemployed person aged between 16 and 24. The CBI said this would cover the first year of National Insurance for employers and cost Government £150m a year, which it said would be “affordable”.

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The organisation today launches a new report, Action for jobs: how to get the UK working, which also calls for about 450 business ambassadors to strengthen links between schools and businesses.

In addition it wants the Government to introduce a “readiness for work” assessment for every unemployed person, plus suspending rather than cancelling benefits when someone initially takes a job.

CBI Yorkshire and Humber director Andrew Palmer said: “With unemployment rising, particularly among young people, now is the time for action for jobs.

“The best way of getting the UK working is to get the private sector motoring, but the labour market has been wracked by structural problems long before the recession struck that won’t be swept away by a return to growth.

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“The good news is that even in these challenging times businesses are creating jobs, but all too often the unemployed, particularly our young people, are not best placed to get them. We need businesses, schools and the Government working together to make sure young people are able to shine in the jobs market.

“Our proposals are not exhaustive, but taken together would herald a major shift in the way we prepare youngsters for the world of work, provide support for companies to create and retain jobs, and ensure the benefits system makes work pay.”

Recent figures from the Office for National Statistics showed youth unemployment rose to 991,000 in the three months to August, its highest since records began in 1992, driving the jobless rate among eligible 16- to 24-year-olds to 21.3 per cent.

The CBI said its recommendations were based on research with businesses, academics, charities, unions and unemployed people across the UK. Its proposals cover three areas for action: getting young people ready for work, making the first year of work count and ensuring it pays to work by reforming benefits.

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Mr Palmer added: “Businesses and the Government need to put their shoulders to the wheel and get our young people job-ready.

“We are calling on business leaders to become local champions in schools and colleges across the UK to enthuse young people about the world of work from an early age.”

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