Youth wage subsidy extends to Work Choice

DWP has confirmed that a wage subsidy, similar to that element of the Youth Contract, is to be extended to cover 18-24 year olds on Work Choice. There had been widespread concern that it had previously only applied to the Work Programme and BASE had written to the Minister asking for it to be changed.

The full text of the ministerial statement is as follows:

The Minister for Disabled People (Maria Miller MP): I would like to announce plans to launch a new wage incentive scheme in July this year. The wage incentive – worth up to £2,275 each – will be available to employers who recruit an 18-24 year old disabled person from Work Choice into sustained employment. Work Choice is a specialist disability employment programme that provides tailored support to help disabled people who have the most complex support needs.

This extra support for young disabled people will sit alongside the Youth Contract, which currently offers a similar wage incentive for employers who recruit an 18-24 year old from the Work Programme – the Government’s leading back to work programme.

The aim of this wage incentive scheme is to incentivise employers into giving young disabled people participating on Work Choice a chance in a weaker market. This is at a time when they might be overlooked because of a lack of skills or experience and the scheme can therefore help reduce the scarring that young people face as a result of a recession. It provides valuable support to employers, in addition to the support to employer and disabled employee already provided through Work Choice in-work support or Access to Work.

The subsidy will be available from July.