From the TUC

Cuts Watch #60: the golden hello

14 Jun 2010, by in Cuts Watch

Jobcentre Plus has confirmed that the Recruitment Subsidy will close down at the end of the month.

This clears up some confusion: the original Treasury list of spending cuts mentioned a plan for “removing recruitment subsidies from the Six-Month Offer” but it wasn’t entirely clear this meant that was to be abolished entirely.

The Recruitment Subsidy – sometimes called the ‘golden hello’ was introduced in April 2010, and it offers a subsidy of £1,000 plus help with training costs for businesses that employ someone who has been unemployed for over 6 months. Individual unemployed people are able to use a subsidy voucher to market themselves to employers. It was due to run for two years until March 2011.

Business Link is now advising employers that the scheme will cease to operate at the end of the month – closing nine months early. Eligible recruits who start work by 30 June will still qualify – provided a claim is submitted by 30 July.

Research showed that Jobcentre Plus advisers thought it was useful, especially the self-marketing voucher. The most recent statistics showed that 22,900 unemployed people used the Recruitment Subsidy between April 2009 and January 2010. At that rate, total usage over two years could have been expected to be over 50,000 and the cut to have affected 20,000 unemployed people who might have benefited from it.

2 Responses to Cuts Watch #60: the golden hello

  1. Cuts Watch #71: Cuts in support for unemployed people | ToUChstone blog: A public policy blog from the TUC
    Jun 17th 2010, 1:27 pm

    […] Today’s Treasury Annoucement confirms that £290 million is being cut from the Future Jobs Fund, that £30 million is being cut from the golden hello scheme. […]

  2. Cuts Watch #99: Support for young people to work in social care | ToUChstone blog: A public policy blog from the TUC
    Jun 28th 2010, 11:54 am

    […] transpires that as well as the scrapping of the ‘golden hello’ recruitment subsidy programme, the Government has cut Care First Careers –  the £75m programme to […]