The Confederation of British Industry has formally backed the government's £1 billion Youth Contract programme aimed at ensuring ‘every young person in the UK is in education or employment’.

The Confederation of British Industry (CBI) has formally backed the government's £1 billion Youth Contract programme aimed at ensuring ‘every young person in the UK is in education or employment’.

Under the scheme announced by deputy prime minister Nick Clegg last November, 250,000 more work experience places are expected to be created and firms will be given £1,500 incentive payments to take on young people.

CBI director general John Cridland joined Clegg, employment minister Chris Grayling and leaders of the British Chamber of Commerce, British Retail Consortium and Federation of Small Businesses at a round table event to announce support for the scheme.

Cridland says, ‘The Youth Contract is good news for young people up and down the country. It will encourage firms to give a young inexperienced person a chance so that the scourge of youth unemployment can be tackled.

‘We sincerely hope that employers of all sizes looking to hire staff will see the Youth Contract as a real incentive to invest in our young people.’

Clegg says that the involvement of businesses is vital for the Contract to succeed.

‘Supporting people into work is my priority for 2012 and helping young people get proper lasting jobs is especially important,’ he says.

‘The youth contract will make sure every unemployed young person starts earning or learning again before long term damage is done.’

Clegg adds that support of the major lobbying groups is ‘good news’ because the government ‘can’t do this alone’.

He urges businesses to get involved by visiting the Department for Work and Pensions' Youth Contract website.

See also: How to draw up an employment contract