Government rolls out £3,000 Youth Jobs Grant to boost hiring

The government has launched its Youth Jobs Grant, offering hospitality employers the chance to claim up to £3,000 for recruiting eligible 18- to 24-year-olds as part of its wider drive to tackle youth unemployment.

The scheme, which officially opened for applications yesterday (30 June) after being announced in March, provides employers with a £3,000 grant when they hire an eligible 18- to 24-year-old for a minimum employment period of 16 weeks.

The launch comes as youth unemployment rose to 14.7%, its highest level since late 2014.

To qualify, the recruit must have been claiming Universal Credit and looking for work for at least six months before being hired. The role must be a genuine paid position, rather than replacing an existing vacancy, and offer a minimum of 25 hours’ work per week for at least four months.

The initiative forms part of the government’s wider package of employment reforms announced in March as part of its ‘New Deal’ for young people.

Allen Simpson, chief executive of UKHospitality, welcomed the launch, saying: “The Youth Jobs Grant is a positive initiative to reduce the cost of employment, create more opportunities and support hospitality businesses.”

He added that UKHospitality had worked with the government on how the sector could engage with the wider Youth Guarantee scheme, the government’s £2.5b support package designed to tackle youth unemployment.

Earlier this year, UKHospitality warned that a whole generation of young people risked being locked out of work opportunities as rising employment costs force businesses to cut jobs.

Hospitality has traditionally been a key entry point into the labour market, accounting for around 37% of first jobs in the UK, and employers across the sector have been implementing their own initiatives to support young people into work.

Last month, Compass Group UK & Ireland launched Classroom to Careers, a programme designed to help young people build the skills and confidence needed to progress into sustainable employment.

Meanwhile, McDonald’s announced a paid work experience programme offering 2,500 placements in areas with high numbers of young people who are not in education, employment or training (NEET), which the company says is the UK’s largest in-person work experience programme to date.