CBI calls for tax incentives to improve youth employment

TAX BREAKS to facilitate young people working would make a dent in rising unemployment, according to business lobbying organisation the CBI.

A new Young Britain Credit would give firms £1,500 for taking on an unemployed person aged between 16 and 24, enough to cover the first year's National Insurance payments.

Other proposals include businesss ambassadors to strengthen links between businesses and schools, "readiness-for-work" assessments and courses to help young people build the skills they need to bridge the gap between school and work.

Director John Cridland said: "Even in these challenging times businesses are creating jobs, but all too often the unemployed, particularly our young people, are not best placed to get them.

"We need businesses, schools and the government working together to make sure young people are able to shine in the jobs market."

The Young Britain Credit would cost around £150m a year, while a separate proposal would see benefits suspended – rather than cancelled – when someone initially takes a job, to make short-term posts more attractive.