Extend Small Business Internship Scheme, argues FSB
The Federation of Small Businesses (FSB) is asking that the Government extend a graduate internship scheme focused on small businesses which is due to come to an end in March. The FSB claim that the scheme run since 2009 by the Higher Education Funding Council for England (HEFCE) has been “highly successful” with one in four interns receiving the offer of a permanent position. Furthermore the FSB claim that the scheme would generate a £2 million return on the Government’s investment as well as offering a much needed opportunity for new graduates.
A spokesperson for the Department for Business, Innovation and Skill (BIS) said that the scheme had been a “recession measure” and would be closed down as planned. The scheme was intended to provide subsidised internships in small businesses in “priority sectors” for 8,500 recent graduates.
The FSB have calculated that putting a further 5,000 graduates into the scheme would save the government £4.87 million in benefits and generate a further £5.4 million in income tax revenues from those given permanent jobs, thereby earning more than the £8 million the FSB calculate the extension of the scheme would cost.
John Walker, the FSB’s national chairman said
“The UK’s young people are the future of the economy, yet we are seeing youth unemployment approaching one million. It’s time the Government invested in this vital sector so that we don’t see a generation of youngsters consigned to the dole queue.”
George Grayson
Research and Policy Officer
