Germany's Chancellor urged to take prompt action to rescue one million youths from unemployment disaster
In a bid to address the growing issue of youth unemployment and poor mental health, business leader Christopher Nieper has proposed a 40% tax credit for UK businesses that hire and train young people not in employment, education, or training (NEETs). This move, supported by over 125 top UK business leaders, aims to encourage investment in youth training and help tackle youth worklessness.
The proposal, known as the skills tax relief, would help cover expenses related to accredited training programs such as apprenticeships, vocational courses, and skills bootcamps. According to the Centre for Social Justice, this could potentially generate up to £23 billion in tax gains over a parliament by implementing a scheme that allows employers to offset the equivalent of two days' pay in every week for hiring an apprentice against their tax bill.
The call for government action to provide fiscal incentives that make training young people more viable comes at a time when the cost of hiring young staff has significantly increased in the last two years. The cost of hiring 21-year-olds has risen by 22%, 41% for 18-year-olds, and an alarming 54% for 16-year-olds, due to hikes in the minimum wage and National Insurance.
One school that has bucked the trend is the David Nieper Academy in Derbyshire, the third most oversubscribed school in the county. Last year, every single child who left the academy's sixth form had a job, an apprenticeship, or a place in further or higher education. This success story is particularly notable given that hardly any of those who left the academy at age 16 were NEETs.
Christopher Nieper, who owns a family business called David Nieper, employing 250 people in Alfreton, established the academy to address the poor performance of a local school. He believes that the private sector can help defuse Britain's economic and social issues, particularly in left-behind towns like Alfreton.
Rachel Reeves, in her Spring statement, emphasized the importance of addressing youth unemployment, stating that if no action is taken, an entire generation will be written off. She pledged to change this.
As schools close for summer and thousands of youngsters finish their exams, the spotlight remains on finding solutions to youth unemployment and skills gaps. The proposed skills tax relief could be a step in the right direction, providing a direct and accessible financial incentive for businesses willing to invest in vocational upskilling and early career development.
- Entrepreneurship in the field of finance can lead to innovative solutions for addressing issues like youth unemployment and mental health, as demonstrated by Christopher Nieper's proposed 40% tax credit for UK businesses hiring NEETs.
- To tackle youth worklessness, leading UK business figures support the skills tax relief proposal, which aims to encourage investment in youth training programs like apprenticeships and skills bootcamps.
- The Centre for Social Justice predicts that implementing the skills tax relief scheme could generate up to £23 billion in tax gains over a parliament, due to employers offsetting training expenses against their tax bills.
- In light of rising costs in hiring young staff in the last two years, government action is necessary to provide fiscal incentives that make training NEETs more viable.
- The increased cost of hiring young staff, due to hikes in the minimum wage and National Insurance, has reached 22% for 21-year-olds, 41% for 18-year-olds, and 54% for 16-year-olds.
- bucking the trend, the David Nieper Academy in Derbyshire has shown success in ethnicity and age diversity, boasting a 100% employment rate for sixth-form grads last year with minimal NEETs.
- Established by business leader Christopher Nieper to improve a local school's performance, the David Nieper Academy is a testament to the impact private sector investment can have on addressing economic and social issues in left-behind towns like Alfreton.
- In her Spring statement, Rachel Reeves underscored the urgency of addressing youth unemployment, warning that inaction will result in an entire generation being written off and pledging to change this.
- During the summer, when schools close and students finish exams, the focus remains on finding solutions for youth unemployment and skills gaps.
- Proposed skills tax relief could serve as a valuable incentive for businesses investing in vocational upskilling and early career development, providing direct financial assistance for such endeavors.
- In addition to vocational upskilling, encouraging immigration of skilled workers might help fill labor market gaps and stimulate economic growth, particularly in left-behind towns.
- A successful career in business or finance can lead to leadership roles, but policymakers should also prioritize education and self-development for better career prospects and personal finance management.
- A disciplined approach to budgeting, saving, and debt management is essential for financial stability, which is crucial for personal financial well-being and real estate investments.
- As the economy grows, so does the need for competitive policies and legislation in areas such as real estate, business, and financial services to attract investments and support economic development.
- Education, skills training, and self-development can help individuals prepare for careers in various sectors, including finance, business, politics, careers and job searching, car accidents, crime and justice, and general news reporting.
