Many analysts have pointed out that those suffering the most from the Government’s new austerity cuts will be the young since they will have to face a power combination of tuition hikes in unemployment that is at its highest levels yet for those in their youth.
With this thought in mind, the Federation of Small Businesses is trying to persuade the Government to extend its Graduate Internship Scheme to help give them a break. The scheme allows grads to find 12 week internships with small businesses that are paid. The funding is scheduled to stop for the programme in March, but according to the FSB not extending the funding longer would hurt the economy more than it would help.
Defending its position, the FSB claims that the scheme is actually quite financially positive for the economy as it is has helped 8,500 graduates find internships costing the taxpayers a total of £13.6m while creating placements for another five thousand would cost £8m.
By finding jobs for 5,000 new graduates then benefit payments would drop down by about £1.5m on average with many of the internships finding permanent work which in turn would help decrease the Jobseekers’ Allowance for the year another £3.37m and then of course those with jobs would be able to pay taxes on their salaries earning the government another £5.4m.
If you add all of the figures together you get a total that is well over the cost of keeping the program. In the mean time, the FSB argues that not only would the Government make money, but they would get extra tax, graduates would have jobs, and the small businesses would get some extra aide which means that everyone in the scenario actually would come out on top.