Friday, July 25, 2014

Youth Contract an Abject Failure as Flagship Unemployment Scheme Ends Early

The Government’s £1 billion Youth Contract scheme is to end a month early after failing to help 94% of young unemployed people it originally targeted.

The scheme, launched in 2012, provided wage incentives to companies as a way of encouraging them to employ young people and was scheduled to continue until September this year.

However, the Financial Times has reported that the deadline for employer applications is to be brought forward a month to August.

At the launch of the scheme, Deputy Prime Minister Nick Clegg said that enough money would be made available to support businesses in employing 160,000 under 25′s on a six-month “job start”.

Despite the pledge from the Liberal Democrat leader, figures show that only around 10,000 young people had been helped into work through the scheme by November 2013. The figure represents just 6.25% of the 160,000 originally targeted by the Youth Contract scheme.