Connect with us

Hi, what are you looking for?

Investing

Questions raised over Chancellor Rishi Sunak’s £2bn youth jobs scheme

There is limited evidence that Rishi Sunak’s £2bn jobs programme for young people is working, according to a new report.

The National Audit Office (NAO) watchdog warned that the government has “limited assurance” over whether the Kickstart scheme, aimed at 16 to 24-year-olds, is having any positive effect or creating high quality jobs.

The government says that some 100,000 jobs have been created through the scheme, but it is unclear if these roles would have been created anyway, said the NAO.

The Kickstart scheme was designed to create six-month work placements for young people claiming benefits following a sharp rise in unemployment following the pandemic last year.

But the NAO has also cautioned that more could be done to ensure that the jobs created are “targeted at those who need them the most”.

Gareth Davies, head of the National Audit Office, said: “At the start of the pandemic, DWP (Department for Work and Pensions) acted quickly to set up Kickstart to help young people into work when youth unemployment was predicted to rise significantly.”

“However, DWP has limited assurance that Kickstart is having the positive impact intended,” Mr Davies said. “It does not know whether the jobs created are of high quality or whether they would have existed without the scheme.”

In its report, the NAO added that the labour market reopened in ways that were not originally expected due to following lockdowns.

This increased the risk of the government subsidising jobs that would have been created anyway, the NAO said.

The government had initially stated that it intended to get 250,000 young people on a Kickstart placement by the end of this year – but fewer than 2,000 young people had started new roles through the scheme as of January 2021.

This summer, the DWP admitted that this target was unrealistic. It now estimates there will be up to 168,000 starts by the end of March 2022.

Read more:
Questions raised over Chancellor Rishi Sunak’s £2bn youth jobs scheme

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Investing

EasyJet plunged £213 million into the red in the Christmas quarter and is still burning through £150 million in cash each month, putting its...

Investing

A new range of healthy yet indulgent cookies will launch in Booths this month for just £1 per pack with the UK-born snacks by...

Investing

Payments firm Checkout.com has raised $1bn (£730m), giving it a $40bn (£29bn) valuation and crowning it the UK’s most valuable private fintech. The London-headquartered...

Investing

Sylvera, a UK-based startup that provides ratings for carbon offsets, has raised $32.6m (£24.1m) in a Series A funding round to accelerate and expand...

Investing

UK-based fintech Everything has raised €2m (£1.67m) to reinvent a decades-old financial product: premium bonds. The raise was led by a group of angel...

Investing

Boxt, a UK smart home heating startup that provides an “Uber-style” service for fitting boilers, electric vehicle chargers and air conditioning, has raised £20m...

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Economy

Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...

Investing

Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...

Investing

As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.