COVID-19: Firms to receive £1,000 bonuses to hire young people

As part of the Chancellor’s COVID-19 economic recovery plan, companies will be paid £1,000 bonuses by the government to hire young people as trainees. 

The government is pledging to provide 30,000 new traineeships to get young people in England back into work. The bonuses form part of an £111 million scheme and will be available for trainees aged 16 to 24. The funding will be capped at 10 jobs per employer, or £10,000.

bonuses for traineeships

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

About the scheme

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.
Unveiling his plan to help kick-start the economy, the chancellor aims to give more 16 to 24-year-olds ‘the tools they need to enter the world of work’.

As part of the new traineeships, which will last from six weeks to six months, young people will receive maths, English and CV writing training, as well as guidance about what to expect in the workplace. They will also receive a high-quality work placement of 60 to 90 hours.

The expanded scheme will be in place in England from September.

What is a traineeship?

  • A traineeship is a course that includes a work placement
  • It can last from six weeks up to six months
  • Traineeships are aimed at 16 to 24-year-olds in England
  • Trainees may complete a maximum of 240 hours of work experience over six months
  • Providers should offer an interview for an apprenticeship or job, if available at the end of the scheme

Employers are not required to pay trainees for a work placement, unlike apprenticeships where the minimum wage rate is £4.15 per hour.

On an apprenticeship, a person is employed to do work while studying for a formal qualification, usually for one day a week, either at a college or training centre over a number of years.

Evidence shows that three-quarters of 18 to 24-year-olds who complete traineeships move on to employment or further study within 12 months.

Find out more here.