CBI back Nick Clegg’s £1bn Youth Contract

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

Under the Youth Contract scheme, announced by Deputy Prime Minister Nick Clegg in November and developed from an idea in the CBI's Getting the UK Working report, 250,000 more work experience places will be created and firms will be given £1,500 incentive payments to take on young people.

John Cridland, CBI director general, joined Clegg and employment minister Chris Grayling with business leaders at a round-table event at Westfield shopping centre in Stratford to announce support for the scheme.

Cridland said: "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 Contracts as a real incentive to invest in our young people.

At the event, Clegg advised that the involvement of businesses was vital for the Youth Contract to succeed.

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

"The Youth Contract will make sure every unemployed young person starts earning or learning again before long term damage is done.

"But government can't do this alone; we need businesses to play their part too. That's why the support of The Confederation of British Industry, British Chambers of Commerce, British Retail Consortium and Federation of Small Businesses is such good news."

Some of the UK's leading businesses including, Marks & Spencer, John Lewis, BT and Asda were also present at the round-table event, where they explained how they offer young people work, training and apprenticeships.