Firms 'will ignore golden hello'
Apr 07 2009
Government plans to offer a £1,000 subsidy to firms who take on the long-term unemployed are not expected to boost recruitment.
The Federation of Small Businesses claims that the development is unlikely to have a real impact on the UK's employment figures, as the subsidy will not influence companies to take on more workers.
A spokesman for the group claims: 'This is really a measure to tackle long-term employment rather than rising unemployment.'
The representative adds that a more practical way to tackle the problem would be to re-introduce the Enterprise Allowance Scheme, which helped those out of work to start their own business.
However, the group says that some companies will benefit from the new subsidy initiative, such as those that were already looking to fill vacancies.
Announcing the scheme yesterday, work and pensions secretary James Purnell revealed that £2 billion will be invested to enable the unemployed to return to work.
He also explained that the initiative will allow firms to receive up to £1,500 to cover on-the-job training if they take on someone who has claimed unemployment benefit for six months.
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