Budget 2021: Traineeships set to receive £126 million boost

26 February 2021, 22:38

Rishi Sunak is set to announce a £126 million boost for traineeships when he announces his Budget
Rishi Sunak is set to announce a £126 million boost for traineeships when he announces his Budget. Picture: PA
Nick Hardinges

By Nick Hardinges

Traineeships are set to get a £126 million boost when Chancellor Rishi Sunak announces his Budget next week.

The extra funding will help to create an additional 40,000 traineeships in England, the Chancellor of the Exchequer will tell MPs on Wednesday.

Mr Sunak is also expected to promise an increased cash incentive of £3,000 for employers who hire an apprentice, regardless of the worker's age.

Businesses can currently claim £2,000 for each apprentice they take on between the age of 16 and 24, or £1,500 if they hire someone over the age of 25.

The chancellor will also introduce new "flexi-job" apprenticeships that will allow trainees to develop their skills with a range of employers from a particular industry.

Budget 2021: Denying NHS workers pay rise 'kick in teeth', Labour says

Read more: Rishi Sunak warns 'economy will get worse before it gets better'

Rishi Sunak outlines how coronavirus has affected the economy

The measure aims to link the young workers to an agency, rather than a single employer, so they can gain experience from a number of relevant organisations.

From July, employers will be able to bid for money from a £7 million kitty to create new agencies, with the first batch of apprenticeships expected to commence in January 2022.

Ministers believe the scheme will most likely be picked up in sectors with flexible working patterns, such as the television and film industries.

The policy comes amid concerns that young people have been hit particularly hard by the economic fallout from the coronavirus pandemic.

Read more: Northern Tory MPs pile pressure on Sunak for more Covid support

Watch: 'Chancellor won't meet me over 3 million excluded' - Anneliese Dodds

Shadow Chancellor Anneliese Dodds says Rishi Sunak "appears out of ideas".

Mr Sunak said: "Our plan for jobs has spread opportunity and hope throughout the crisis, helping people back into work and harnessing their talents for the future.

"We know there's more to do and it's vital this continues throughout the next stage of our recovery, which is why I'm boosting support for these programmes, helping job seekers and employers alike."

Association of Colleges chief executive David Hughes welcomed the investment but said it would not be enough to help build the country back "fairer and better" after the pandemic.

"It is vital that we continue to find ways to support young people who are amongst those hardest hit by the pandemic, but we must also ensure colleges have the flexibility and funding certainty to be able to meet skills needs more widely over the next few years," he said.

"These short term measures are helpful, but not sufficient if we are to successfully build back fairer and better."

Listen & subscribe: Global Player | Apple Podcasts | Google Podcasts | Spotify

More Latest News

See more More Latest News

Many of the victims were staying at the Nana Backpacker Hostel

Laos hostel owner arrested after Brit lawyer becomes fifth tourist to die in 'poisoning'

Breaking
Holly Bowles

Sixth person dies in Laos ‘methanol mass poisoning’ as hostel owner detained by police

Exclusive
Feargal Sharkey tests the River Test with LBC

'We're destroying what should be the finest river on Earth': Feargal Sharkey tests the River Test with LBC

Household energy bills will rise again from January

Household energy bills to rise by £21 a year from January in further blow for Brits this winter

Putin issued a chilling threat to the West as he confirmed Russia launched a ballistic missile against Ukraine

'The world must respond': Zelenskyy warns that Putin is 'testing' the West after confirmed use of new ballistic missile

Matt Gaetz withdraws as Donald Trump's nominee for attorney general amid sexual misconduct allegations

Donald Trump nominates Pam Bondi for attorney general hours after Matt Gaetz withdraws

Starmer has backed the International Criminal Court over its arrest warrant for Netanyahu

Netanyahu faces arrest if he travels to Britain as Starmer vows to enforce International Criminal Court warrant

Yvette Cooper has branded the Rwanda scheme a "complete con."

Yvette Cooper to crack down on anti-social behaviour with new 'respect orders' as repeat offenders face jail time

King Charles III And Queen Camilla on Coronation Day

King Charles' coronation cost taxpayer £72 million, report reveals

Pep Guardiola, Manager of Manchester City

Pep Guardiola signs two-year contract extension with Manchester City

Captain Tom's Daughter Hannah Ingram-Moore

Behaviour at Captain Tom charity left ex-boss 'gobsmacked'

Armed robbers attempted to break into the star's Sunderland home.

Masked machete-wielding robbers break into Charlotte Crosby's home while she is upstairs with two-year-old daughter

Police have released new CCTV of Harshita Brella and her husband

Chilling CCTV released of Harshita Brella and prime murder suspect husband on night she was killed

First photos of Gavin and Stacey Christmas Special as James Corden and Ruth Jones mark triumphant finale

First photos of Gavin and Stacey Christmas Special as James Corden and Ruth Jones mark show's triumphant finale

King Charles performs a Hongi, a traditional Maori greeting, with Mere Takoko

King Charles shares traditional Maori nose rub greeting with activist as he launches environmental charity

Putin issued a chilling threat to the West as he confirmed Russia launched a ballistic missile against Ukraine

Putin issues chilling warning to UK and US as he confirms Russia hit Ukraine with new 'experimental' ballistic missile