Unemployed - Golden Hello’s for UK Employers

The government is to give firms that recruit people unemployed for more than
six months "golden hellos" of up to £2,500, in a move that provides half a billion
pounds to keep employers hiring.

The unexpected initiative, which will be announced at the government's jobless
summit this morning, is the latest to tackle rising unemployment, predicted to
hit 3 million by the end of the year. Last week, the skills secretary, John Denham
announced measures to increase apprenticeships by 35,000 and a system of
internships to ensure students unable to find employment still find training.

Ministers gathering in central London for the jobs summit today will take part
in round-table discussions with private and public sector employers and union
officials. The prime minister is also expected to make a speech and hold a
question and answer session.

Under the latest plans, the government will put £400m, nearly half of the £1bn
contingency fund it set aside in last November's pre-budget report, to reward
firms who hire someone who has been out of work for more than six months
according to a Downing Street aide.

The Department for Work and Pensions and the Department for Innovation,
Universities and Skills will administer the scheme over a two-year period starting
in April, and the DWP said it would also be funding £100m of the project through
savings the department was making through the government's VAT cut.
An aide said yesterday: "This is genuinely new money."

The government's scheme will see Jobcentre Plus staff have the power to award
up to £2,500 to a firm that hires someone unemployed for more than six months.
New training places will also be funded, and volunteering that may help the jobless
secure employment at a later stage will also be given extra money.

At the moment 262,000 people are registered as out of work for six months or
more and the figure is expected to rise, but ministers hope today's scheme will
encourage those on unemployed benefits to be hired to fill the 500,000 job
vacancies still unoccupied despite the recession.

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