Employers offered £2.5k to recruit long-term unemployed
Businesses are to be paid ‘golden hellos’ of up to £2,500 if they recruit and train job seekers who have been out of work for six months or more, the Government has announced.
The move is part of a £500 million package of measures, unveiled by the Department of Work and Pensions, which are designed to combat rising unemployment and support those hit by the recession. The measures will come into effect in April and will be administered by Jobcentre Plus around the UK.
Those wishing to set up their own business will also be supported as part of the initiative. A £750 grant to help with start–up costs and equipment will be available for those out of work for more than six months, as well as advice on creating a business plan and access to specialist Jobcentre Plus advisers.
The British Chambers of Commerce (BCC) cautiously welcomed the proposals, calling them ‘fair’, but said that cashflow, rather than recruitment, was the main concern for most small businesses in the current climate. BCC head of policy Chris Hannant said:
“The priority should be helping businesses keep jobs. Many businesses are having to layoff staff at the moment and are not in a position to recruit.”
“The top issue for business is protecting cash–flow. The Government can help by cutting business taxes, ensuring banks maintain credit facilities and delivering flexibility on tax payments.”
Skills Secretary John Denham added:
“We know that people whose skills are up–to–date are much more likely to find a good job, and that employers with well–trained staff survive a recession much better than firms which don’t invest in skills.”
For more information on the rules and regulations of having employess, read our articles on employment.