CBI publishes report with proposals to tackle unemployment
The CBI has called on the Government to introduce a new tax incentive to encourage companies to take on young unemployed people.
The CBI has launched a new report “Action for jobs: how to get the UK working”. Its proposals include a new Young Britain Credit worth £1500 for firms taking on an unemployed person aged 16-24 years. The CBI argue that this would cost £150 million a year but is affordable within the context of the Government’s deficit reduction plans.
Other proposals include:
- Creating around 450 business ambassadors, one for each local area, to strengthen links between schools and businesses using successful schemes that build long-term partnerships;
- Introducing a comprehensive “readiness for work” assessment for every unemployed person; and
- Suspending, rather than completely cancelling benefits when someone initially takes a job to reduce the perceived risk of taking a short-term post.
John Cridland, CBI Director-General, said:
“With unemployment rising, particularly among young people, now is the time for action for jobs.
“The best way of getting the UK working is to get the private sector motoring, but the labour market has been wracked by structural problems long before the recession struck that won’t be swept away by a return to growth.
“Our proposals are not exhaustive, but taken together would herald a major shift in the way we prepare youngsters for the world of work, provide support for companies to create and retain jobs, and ensure the benefits system makes work pay.”
Read the full Action for Jobs report
Amanda Frewin
Research & Project Support
