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Government takes further responsibility for helping the unemployed get back to work but it's not new funding

The Chancellor was obliged in this pre-election Budget to further outline the Government's responsibility to help the unemployed, particularly the young - often referred to as 'NEETs' (people under 25 years old, not in employment, education or training) - and the measures announced today will go some way to provide the necessary measures but did not go far enough says leading business and financial adviser Grant Thornton.

Ellie Gamble, senior tax manager at Grant Thornton says: 'Whilst any measure to tackle the problem of unemployment amongst the under 25s are to be welcomed, the money to pay for the extension of the Young Person's Guarantee of work, work experience or training for under 25s who have been unemployed for more than six months to March 2012 is only an underspend of the existing budget allocation. It's not new funding.

The unemployment rate for those aged 18 - 24 is 17.5% as compared to a figure of 7.8% in the general population*. The student population has also increased to over 2 million. However, being a student only defers the date when the young person is looking for a job.

" The problem of youth unemployment is not going to disappear and forms one of the greatest challenges to the incoming administration, of whatever political persuasion. A closer inspection to ensure that the scheme is properly targeted and fully fit for purpose is warranted if this 21st century phenomenon is to be solved, rather than left to solve itself," concludes Gamble.

ENDS

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