Coronavirus: Firms to be paid £1,000 bonuses to hire young people as part of economic recovery

Chancellor Rishi Sunak is set to unveil a raft of big-spending measures aimed at creating thousands of jobs.

Coronavirus: Firms to be paid £1,000 bonuses to hire young people as part of economic recovery 1
The government will pay £1,000 bonuses to companies which hire trainees. File pic

Companies will be paid £1,000 bonuses by the government to hire young people as trainees, the chancellor will announce as part of his rescue plan for Britain’s post-coronavirus economic recovery.

In a hotly-anticipated “emergency Budget” on Wednesday, Rishi Sunak will unveil a raft of big-spending measures aimed at creating thousands of jobs to replace those lost during the COVID-19 pandemic.

The bonuses for employers who hire young people into training programmes in England will come in a £111m scheme which will pay direct government subsidies for taking on trainees for the first time.

Chancellor Rishi Sunak
Chancellor Rishi Sunak will unveil a raft of big-spending measures on Wednesday

The money will be available for trainees aged 16 to 24 and will be capped at 10 jobs per employer, or £10,000.

Employers will be able to determine how to spend the £1,000, as long as it directly or indirectly contributes to training.

The scheme, in which thousands of young people will be given the skills to secure a job, will be part of the largest-ever expansion of traineeships the country has ever seen, the chancellor is expected to tell MPs on Wednesday.

Unveiling his plan to help kick-start the economy, following on from Boris Johnson’s “New Deal” speech last week, Mr Sunak will say he aims to give more 16 to 24-year-olds “the tools they need to enter the world of work”.

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