Back tracking is becoming a policy model at the Treasury, this time launching a bail out both to employers financially, and itself politically, in a bid to reverse the decline in youth employment generated by the last Budget. Too little too late?

Both UKHospitality and the BBPA have welcomed the government’s proposals to introduce a £3,000 Youth Jobs Grant for employers hiring employees aged between 18 and 24 who are on benefits and have been seeking work for more than six months.

The proposals, based on suggestions made by the trade bodies themselves, are intended to boost dwindling employment figures, and come as businesses continue to count the cost of rising wages and Employer NICs.

“Hospitality is the sector best placed to help people back into work, and these are important measures that remove barriers for businesses employing more people,” said UKHospitality chair Kate Nicholls. “The Government’s £3,000 Youth Jobs Grant is modelled on proposals UKHospitality submitted, and I’m pleased that this has been taken forward.” 

“Acting as the equivalent to an employer NICs holiday for businesses employing young people, the grant helps to address a major cost challenge for hospitality businesses.”

A plaster for a  self-inflicted wound

To its credit, the Government has quickly applied a plaster to protect the seepage from a wound it inflicted in the Budget. Industry figures in their hundreds warned the Treasury that their tax rises would cause catastrophic damage to youth employment, chief among those being Adam Williams from Tir Prince who laid out exactly what the consequences would be to temporary teenage jobs – a warning of decline that has turned into fact.

What about the summer season?

Whether it’s in time for the amusements sector’s seasonal jobs push remains to be seen, but there is some longevity in the U-turn. The proposals also suggest expanding government-supported foundation apprenticeships  into the hospitality and retail sectors from next month.

“Schemes that expand access to apprenticeships and early work opportunities have the potential to make a real difference, particularly when they are shaped alongside employers who understand the needs of the sector,” said the BBPA.

“At the same time, it is important that the wider policy environment encourages businesses to keep creating these opportunities.”

It would also help if the government listened more to those on the front line – and stop scoring own goals.