Employment Incentive Scheme: Extension

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A decision made 11 December 2015:

Decision Reference: MD-S-2015-0100
Decision Summary Title :	Employment Incentive Scheme		Date of Decision Summary:	10 December 2015
Decision Summary Author:	Head of Back to Work		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title :	Employment Incentive Scheme		Date of Written Report:	12 May 2015
Written Report Author:	Head of Back to Work		Written Report : Public or Exempt?	Public
Subject: Employment Incentive Scheme
Decision(s): The Minister decided to extend the non-statutory Employment Incentive Scheme, launched in May 2015 (MD-S-2015-0047), to provide financial support to employers in recruiting locally qualified people who are registered as long-term unemployed into permanent employment during 2016.
Reason(s) for Decision: Tackling unemployment remains a priority and the need continues to provide support to those who require the most help to get back into work. The Employment Incentive Scheme was launched in May 2015 to replace two of the previous employer financial incentives; the Employment Grant Scheme (MD-S-2013-0054) and the Youth Incentive (MD-S-2014-0063) providing access to sustainable employment for people who have been registered as long term unemployed – under 25s who have been registered as actively seeking work (ASW) for 6 months and over 25s who have been ASW for 12 months. The scheme has been successful so the Minister has decided to extend this initiative during 2016. The key elements of the Employer Incentive Scheme are summarised below: 1. Employers can claim up to £6,570.83 (calculated at minimum wage of £6.78 per hour plus the employer’s 6.5% Social Security contributions for 35 hours per week for the first 6 months of employment), N.B. this maximum figure will increase in April 2016 in line with statutory minimum wage. 2. Only permanent contracts are eligible for this Incentive 3. Back to Work will provide 6 months in work support for both the employer and employee Full details of the scheme are included in the accompanying Employer Incentive guidelines
Resource Implications: Funding will be provided from the existing budget held by the Social Security Department for the Back to Work Programme. The Employment Incentive Scheme is ongoing, subject to review, until 31 December 2016 in line with the Medium Term Financial Plan.
Action required: Operations Director to extend the Employment Incentive Scheme.
Signature:		Position: Minister
Date Signed:		Date of Decision (If different from Date Signed):