THE government is set to subsidise the wages of young people in a new kickstart jobs scheme aimed at finding work for unemployed Brits.
But how will the six-month wage scheme work? We explain all we know so far.
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What is the kickstart jobs scheme?
Under the £2billion Kickstart Scheme, the government will pay towards six months of wage costs of 16 to 24-year-olds at risk of long-term employment who are hired by employers.
It will cover 100 per cent of the minimum wage for a maximum of 25 hours a week — with firms able to top up wages.
For example, young people between 21 and 24 years old on minimum wage currently earn £8.20 an hour, working out as £205 for 25 hours.
Chancellor Rishi Sunak is set to announce the scheme in his mini-Budget today as part of efforts to help Britain bounce back from the coronavirus crisis.
Prime Minister Boris Johnson has put tackling youth unemployment at the top of the government’s recovery plan.
It follows dire forecasts from experts predicting more than a million youngsters will be out of work this year.
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How will the six-month wage scheme work?
The scheme is set to open next month, costing the the state an average of £6,500 for each job.
But Mr Sunak hopes it will trigger a mass hiring spree by firms.
Employers will be able to offer a six-month work placement for people aged between 16 and 24 who are claiming Universal Credit and at risk of long-term unemployment.
The Resolution Foundation has forecast the scheme will help find jobs for around 350,000 youngsters in that age group.
The government hasn't yet released full details on how the scheme will work, so we'll update this article once we know more.
The scheme comes as the Organisation for Economic Co-operation and Development has warned that the unemployment rate could reach 15 per cent if a second virus wave hits.
Roughly 9.3million workers in the UK have been furloughed due to the pandemic.
And experts have warned redundancies could be on the cards as employers have to start contributing towards the scheme from August.
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