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Published on November 25th, 2011 | by Joe Hinds
Image © [caption id="" align="alignleft" width="182" caption="Clegg Failed To Rule Out That The New Fund Would Come At The Expense To The Poorest © Liberal Democrats"] Clegg[/caption] A new £1bn scheme to encourage youth employment was unveiled yesterday in what Nick Clegg hailed as action to 'help prevent another lost generation of young jobless people. The money from the scheme will look to increase employment opportunities and will encourage apprenticeships, job subsidies and work placements by providing £2,275 to any private sector business willing to hire an unemployed person between 18 and 24 years old. The fund is set to last for three years and aims to have provided additional jobs for 500,000 currently unemployed youths. Aside from the fact that this youth fund comes as a dramatic u-turn from the coalition policy (after they axed the almost identical Future Jobs Fund scheme initiated by Labour earlier this year - which provided up to £6,500 to businesses), this scheme has already come under fierce criticism - as Clegg has refused to deny that the scheme will cost to low-to-middle income families the most. I seems very likely that the money for this new scheme will be funded by a decision not to increase tax-credits in line with inflation. If this is the case then this, once again, looks to be another Tory-led policy which will continue to squeeze the families which have already borne the brunt of the government's cuts. Alongside the fact that median wages have already dropped by 3.5% for those at the lower end of the financial spectrum it seems as though we look set to become even poorer come April 2012, as we take a pay cut for this new programme However, that is not to suggest that strong action isn't need to tackle the mammoth problem of youth unemployment in this country - that mere fact that it has needed youth unemployment to reach over 1 million before any action has been taken is absurd. Severe action needs to be taken by this government but this knee-jerk response by the coalition to find resources for a new funding scheme simply by taking it from families who are on tax-credits on serves to highlight the failings of this government.

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£1bn Youth Jobs Fund – But Who’s Footing The Bill?


Clegg

Clegg Failed To Rule Out That The New Fund Would Come At The Expense To The Poorest © Liberal Democrats

A new £1bn scheme to encourage youth employment was unveiled yesterday in what Nick Clegg hailed as action to ‘help prevent another lost generation of young jobless people. The money from the scheme will look to increase employment opportunities and will encourage apprenticeships, job subsidies and work placements by providing £2,275 to any private sector business willing to hire an unemployed person between 18 and 24 years old. The fund is set to last for three years and aims to have provided additional jobs for 500,000 currently unemployed youths. Aside from the fact that this youth fund comes as a dramatic u-turn from the coalition policy (after they axed the almost identical Future Jobs Fund scheme initiated by Labour earlier this year – which provided up to £6,500 to businesses), this scheme has already come under fierce criticism – as Clegg has refused to deny that the scheme will cost to low-to-middle income families the most.

I seems very likely that the money for this new scheme will be funded by a decision not to increase tax-credits in line with inflation. If this is the case then this, once again, looks to be another Tory-led policy which will continue to squeeze the families which have already borne the brunt of the government’s cuts. Alongside the fact that median wages have already dropped by 3.5% for those at the lower end of the financial spectrum it seems as though we look set to become even poorer come April 2012, as we take a pay cut for this new programme

However, that is not to suggest that strong action isn’t need to tackle the mammoth problem of youth unemployment in this country – that mere fact that it has needed youth unemployment to reach over 1 million before any action has been taken is absurd. Severe action needs to be taken by this government but this knee-jerk response by the coalition to find resources for a new funding scheme simply by taking it from families who are on tax-credits on serves to highlight the failings of this government.

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