Umbrella Companies | Youth contract scheme could help umbrella companies

Youth contract scheme could help umbrella companies

The REC is keen to encourage the government to take action to help Britain’s unemployed youngsters, some of whom might become umbrella company employees, obtain meaningful employment.

The Confederation has now sent a letter to the Deputy Prime Minister, Nick Clegg, explaining that recruiters have a vital contribution to make in promoting the recently launched Youth Contract scheme.

Under the scheme, employers will receive up to £2,275 from the government for each person between the age of 18 and 24 they take on from the Work Programme. The CBI first put forward the idea, although the REC did campaign for the government to provide incentives for job creation back in 2010 as part of its Youth Employment Taskforce.

The director of policy and professional services at the REC, Tom Hadley, explained that the Confederation have been pushing for monetary incentives for two years. Whilst it might be limiting to focus incentives just on those who qualify for support from the Work Programme, it is an important step in the right direction. The Government is now prioritising the problem of youth unemployment and concrete measures are being taken to tackle it.

He went on to explain that recruiters are already working with schools and colleges and also promoting the benefits of internships and apprenticeships to their clients. The REC’s Youth Employment Charter aims to highlight this contribution and stimulate more activity.

The government still needs to devise an effective network that will provide careers guidance for the UK’s young people. However, Hadley points out that recruiters can also be relied upon to provide advice to jobseekers and help them decide which career path to follow.

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