The British Retail Consortium (BRC) has welcomed a youth employment drive from Government but warned that industry needs a “joined-up approach”.

Backed by a £1 billion investment, Government’s youth employment drive will aim to create 200,000 jobs for young people.

The ‘New Deal’ will include a new Youth Jobs Grant, through which businesses will receive £3,000 for every young person they hire aged 18-24 who has been on Universal Credit and looking for work for six months. It said this is expected to support 60,000 young people over three years.

The Jobs Guarantee will also have a wider age range, from 18-21 to 18-24, in order to create more than 35,000 extra subsidised jobs. Further reforms to the Growth and Skills Levy will aim to “prioritise young apprentices, secure value for money and give school and college leavers more opportunities to build careers”.

Work and Pensions Secretary Pat McFadden said: “These measures will give life-changing opportunities to young people and significantly reverse the increase we inherited in those not in education, employment or training.

“We are focusing funding where it’s needed most and giving employers the flexibility and support they’ve asked for.

“These reforms will give young people a vital first step on the career ladder and help business leaders recruit the talent that will grow their companies.”

“Foundation apprenticeships for retail could also be a game changer but only if developed in true partnership with the industry.”

Responding to the Government’s ‘New Deal’ for young people, Helen Dickinson, chief executive of the BRC, said: “With youth unemployment at crisis point, it is great to see Government’s commitment to getting more young people into work with the expansion of the Youth Guarantee and the new Youth Jobs Grant. Foundation apprenticeships for retail could also be a game changer but only if developed in true partnership with the industry.

“However, Government risks undermining its own ambition to tackle youth unemployment through other policies. The Employment Rights Act must work with not against opportunities for young people. Without a joined-up approach, well-intentioned initiatives will lose their impact.”

Allen Simpson, chief executive of UKHospitality, said: “Hospitality is a proven pathway into work for young people, regardless of their education, qualifications or background. The inclusion of hospitality in new foundation apprenticeships is recognition of that and I’m pleased that our sector will continue to play a central role in providing opportunities for young people.”