Youth Contract - Frequently Asked Questions

Youth Contract Frequently asked questions

What is the Youth Contract?
The Youth Contract is a package of support worth almost 1billion to help young unemployed people to prepare for work and find a job. Over three years from April 2012 the Youth Contract will provide nearly half a million new opportunities for young people and will enhance the get Britain working measures with an increased focus on young people. We aim to build on the fantastic support many employers have already offered.
What is in it for my business?

The Youth Contract gives you support to create new, sustainable jobs for young people. It will enable you to bring fresh talent into your organisation and build your workforces skills base.
How do I get in touch about the Youth Contract?

If you want to talk to someone about Youth Contract call 0845 601 2001 (option 2). People with a speech or hearing impairment can call textphone 0845 601 2002
What is the Wage Incentive element?

Over three years of the Youth Contract employers are able to take advantage of 160,000 wage incentives. These are worth up to 2,275 each where they employ an 18 to 24 year old from the Work Programme for at least 26 weeks (in Great Britain). Of course, a young person will still need to be paid the National Minimum Wage.
I want to employ someone on a part-time basis. Can I still get wage incentive support?
Yes. The wage incentive is available when you employ someone from 16 hours or more per week. There is a part-time rate (1,137.50) between 16 and 29 hours and a full-time rate (2,275) for 30 hours or more. The job still has to last for at least 26 weeks.
Im a small business and my cash flow means I cant wait 26 weeks?

We recognise that in some circumstances an earlier payment might help a small business with 50 or less employees and you can choose to make a claim after 8 weeks of employment. A payment of 700 which equates to 8 weeks of the wage incentive would be made.
Revised 27/03/12 www.dwp.gov.uk/youth-contract
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Why can only employers with 50 or less employees claim a part payment?
We recognise smaller employers are more likely to need some of the payment sooner to help cash flow and/or to cover initial start-up costs of taking on a new employee. We believe larger employers can reasonably be expected to wait until the requirement of a sustained period of employment is fulfilled and receive the full payment at this point.
Are central government Departments able to use the wage incentive?

No. The wage incentives are primarily available to the private, voluntary community sectors and social enterprise employers. While central government Departments and their executive agencies will be excluded from claiming them, the wider public sector, such NHS trusts will not.
How do I claim a Wage Incentive?

Work Programme Providers will work with employers to identify employment opportunities and issue claim forms when an 18 to 24 year old starts suitable employment. After 26 weeks the employer can claim the full payment from DWP who will validate the claim and make the payment into the employers bank account.
Why is the Government introducing more support for young people?

The Government is committed to making a difference to the life chances of young people and to prevent them being left behind in the current economic climate. The aim is to get every unemployed young person earning or learning before long term damage is done.
Can I help by offering Voluntary Work Experience?

Yes. By offering a Voluntary Work Experience placement you will give a young unemployed person the chance to gain valuable work experience, improve their CV and marketability to potential employers. Voluntary Work Experience also provides young unemployed people with a new potential route onto an Apprenticeship. There will be an extra 250,000 Voluntary Work Experience / sector-based work academy places over the next three years in England and Scotland. If youre interested in offering Voluntary Work Experience places you can read our online guide Could you offer Voluntary Work Experience? (284KB)
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Im a large national employer and I want to make arrangements to bulk claim, is this possible?
Yes. Large employers and Providers may organise claims form routeways between themselves if this is helpful and you may also choose to route all your claims via central points within your organisation.
Will I need to supply any evidence to support their claims?

Yes, but we have listened and have kept this to a minimum. The employer will be asked to provide copies of the individuals pay statements/slips for the period being claimed so that we can see the claimant has been employed by the same employer throughout.
What about Apprenticeships?

Apprenticeships are paid jobs with training designed by employers themselves. There are already 200+ Apprenticeship job roles, with more being developed all the time. Apprenticeships can get young people started on a promising career and bring higher lifetime earnings. An extra 20,000 Apprenticeship Grants for Employers worth 1500 each for employers (in England only) to take on young people as apprentices. Each UK nation operates its own Apprenticeship programme. For more information on the Modern Apprenticeship programme in Scotland, please visit Skills Development Scotland. Alternatively, employers in Scotland can contact the Skills Development Scotland (SDS) helpline on 0800 783 6000. Although not part of the recently announced Youth Contract a wide range of Welsh Government support exists for young people in Wales including a comprehensive apprenticeship offer Apprenticeships in Wales
I want to take a young person on an Apprenticeship. If they are aged 18-24 can I claim a Wage Incentive as well as an Apprenticeship Incentive Payment?
No. The incentives have different purposes and different target groups. The Wage Incentive is for young people aged 18-24 on the Work Programme. The Apprenticeship Grant for Employers (in England ) is expressly intended to enable small employers, who have not previously taken on apprentices, to benefit from the Apprenticeship programme and then you are free to recruit from any source provided the apprentice is aged 16-24.
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How do I offer an Apprenticeship?

National Apprenticeship Service (NAS) and its website will provide more information and guide you through the steps of setting up an Apprenticeship. Further information is available at: www.apprenticeships.org.uk and at Skills Development Scotland for the Modern Apprenticeships in Scotland or Apprenticeships in Wales
What is the Youth Contract Provision for disengaged 16-17 year olds in England?
The Government will invest 126 million over the next three years to support young people aged 16 to 17 who are not in education, employment or training in England. The Young People Learning Agency (YPLA) have run an open competition for providers from all sectors to lead this programme on a regional or sub-regional basis. The procurement process is currently at the Invitation to Tender phase and contracts are due to be awarded in June. Providers will be given complete freedom to design and tailor a programme of support to move 16 to 17 year olds into full-time education, an Apprenticeship or a job with training.
Where can I find out more information about the competition?

The specification and information for bidders were published on 21 February and are available on Contract Finder Youth Contract on Contract Finder Further information is also available from the YPLA website Education and training are devolved policy areas. Scotland, Wales and Northern Ireland will receive separate funding from HM Treasury and they will decide how best to use this additional funding in their respective countries. More information will be detailed here as it is known.
How can I get more information?

Please visit www.dwp.gov.uk/youth-contract
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