A “kickstart scheme” to the sum of £2 billion will be announced by Rishi Sunak in his summer statement today, in the hope of creating more jobs for young people.
The grant will be used to subsidise work placements for those on Universal Credit between the ages of 16 and 24 and who are deemed to be at risk of long-term unemployment. Labour have praised the move, however, believe that the government has not responded to the "rise to the scale of the unemployment crisis" sufficiently.
The chancellor is also expected to announce a temporary stamp duty holiday in order to support the housing market. Under his plan, the first £500,000 of all property sales would be exempt from the tax.
The statement may also include a £3 billion “green” fund and efforts to boost apprenticeships.
According to the Treasury, the "kickstart scheme" is part of a "three-point plan for jobs... to help Britain bounce back from coronavirus".
The government has said that the scheme will allow many young people "the opportunity to build their skills in the workplace, and to gain experience that will improve their chances of going on to find long-term sustainable work". Applications will open in August, and the scheme will run until December 2021, subject to extension.
The scheme has been praised by the CBI, who believe that the new scheme is a “much-needed down payment in young people's futures" while unions consider the move to be a "good first step".
Sunak’s statement will take place today at 12.30 following Prime Minister’s Questions.
