Kritika 
(C): Unsplash
There’s a new reason to get employers to say “yes” to you if you’re an 18 to 24-year-old in the UK who has been on a job search for months and nothing’s come along. The government has unveiled a new incentive for businesses to hire young people who are long-term unemployed, offering them £3,000 for each young person they employ. The objective: to place 60,000 youth into employment in the next three years. See how the scheme works, who’s eligible and what it means for your job search.
Quick Facts on Hiring Incentive
| Category | Details |
| Incentive amount | £3,000 per eligible hire |
| The preferred candidates will be chosen by the employers. | 18-24 year olds not in employment for 6 months or more |
| Where it applies | The counties of England, Scotland and Wales. |
| Target | 60,000 youth into work in 3 years |
| Availability | Employers will be able to enter this week. |
| First major backer | Green Roof, Toronto, Ontario, Canada |
How the UK Hiring Incentive Actually Works
The UK Hiring Incentive is straightforward to design. Employers in Great Britain could receive £3,000 for each young person they employ who falls into two categories: they are aged between 18 and 24, and they have been without employment for at least six months.
It comes in response to a worrying fact: There are 1 million 16 to 24-year-olds in the UK who are out of work, out of education and out of training. That is one in eight young people, and the UK is one of the worst in Europe, after Romania.
The employment scheme is designed by the UK government to make it easy for businesses to take a chance on people who may not have experience, not just because they lack it.
Who Qualifies for This Incentive?
If you are in this category, you may be just about the type of employee that employers who are applying this recruiting grant are looking for right now:
- Aged between 18 and 24
- Have been unemployed for six months or longer
- Originating in England, Scotland or Wales
- Eager and willing to begin a job
Employability for employers is also easy: Any business in Great Britain that is recruiting someone who fits the above criteria can claim this £3,000 employer recruitment grant.
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UK Hiring Incentive vs. The Jobs Guarantee Scheme
The £3,000 grant is not the only assistance that’s available. It complements another, more demanding jobs guarantee scheme for those who have been without jobs even longer. These are the differences between the two:
| Feature | £3,000 Hiring Incentive | Jobs Guarantee Scheme |
| Eligibility | Unemployed 6+ months, aged 18-24 | On Universal Credit, age 18+ and looking for work. |
| Employer benefit | One-off £3,000 payment | All of the costs for employment are covered (100%). |
| Hours funded | N/A — standard employment | No more than 25 hours/week at the minimum wage |
| Duration | Permanent role expected | 6-month funded placement |
The people who are having a hard time getting out and into the job market in the long term.
Why This Matters Right Now
Young people do not bear the burden of the youth jobs crisis equally. Rates of people who are Not in Education, Employment or Training (Neet) can be 1% in some London boroughs, but over 21% in some parts of the West Midlands. The economic cost is huge as well; the estimated cost to the UK of youth unemployment is in excess of £125 billion annually.
Employers with large workforces are already making strides. This is just the first sign of job creation for young people as Merlin Entertainments – the owner of several large attractions in the UK – has agreed to employ 300 young people within the next three years, with hospitality businesses to follow.
FAQs
Do I apply for the £3,000 myself?
No — the employer is the one that receives the grant, not the job seeker. Eligibility is the only criterion (Age 18 to 24, unemployed for 6+ months) for applying for jobs.
Does this mean that I will get a job?
No, but it can help you to get a leg up in the job market because employers may be more inclined to hire candidates who have limited experience.
Is this the same as the jobs guarantee scheme?
No — that’s another more intensive programme for those who have been seeking work for 18 months or more under the new benefit scheme known as Universal Credit, and it provides 6-month placements which are fully funded.
What are the areas that are included in this scheme?
England, Scotland and Wales. Currently, this is not for Northern Ireland.
For how many years will the scheme be in operation?
It has been designed to accommodate 60,000 hires over the next 3 years, so you can get a head start if you are now scouting for a new job.
Key Takeaways
- Employers receive £3,000 from the UK Hiring Incentive for hiring a long-term unemployed 18-24 year old.
- Directed at placing 60,000 young people into employment over three years.
- There are currently around 1 million UK young people who are Neet (not in education, employment or training) and in Europe this is one of the highest rates.
- The incentive is on top of an existing job guarantee for those with greater barriers.
- Some of the biggest employers, such as Merlin Entertainments, are already supporting the UK Hiring Incentive.
