Tax Breaks Proposed For Companies That Recruit Young Workers
Written by Geoff Newman on 31/10/2011
Companies that go out of their way to recruit younger workers should be offered tax incentives by the Government, according to a new proposal by the Confederation of British Industry (CBI).
The organisation has drafted a proposal that suggests that a new "young Britain credit" - of around £1,500 - could incentivise the hiring of young people by more businesses, and help tackle the growing numbers of unemployed youngsters. It is one of a number of suggestions put forward by the body to try to address the problem.
Recent figures have shown that one in five young people are now out of work. The CBI's director-general, John Cridland, said that the time for action is right now.
"We need businesses, schools and the Government working together to make sure young people are able to shine in the jobs market," he said. "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."
Cridland explained that the establishing of the incentive could also go some way to address the major structural problems and unbalanced age weighting that the labour market has suffered from since long before the recession.
Geoff Newman director of online recruitment agency RecruitmentGenius.com recognises this is good news, but feels the tax breaks should go further.
“It’s so expensive to employ staff already with increased Employer National Insurance Contributions, the national minimum wage, increased holiday allowance, not to mention the pensions contributions coming next year that certainly any tax breaks are a benefit. However we must not forget that there are many people over 21 who are in desperate need of a job and so we must treat them equally and offer tax incentives regardless of age.”