Work Pairing: Who pays?

Are the Tory work schemes all that they seem? One pledge worth proper scrutiny is the “Work Pairing” programme “to create up to 100,000 places over two years”. This would match-up teenagers with wily old sole traders for “extended one-to-one work mentoring of six months”. Brilliant idea. But who pays?

The Tories have set aside £300m as an incentive to take on these youngsters. But this covers “additional costs”, things like employer liability insurance, basic equipment, “clothing” and some bursaries for training certificates. The sole traders are still expected to pay their wages.

So, basically, reaching the 100,000 target entirely depends on the appetite for new staff. (You have to wonder how they worked out that number…) The Tory plans certainly makes it easier to take people on. But is there really such demand?

There is one big incentive for the traders: they teenagers are cheaper than normal staff. Under the scheme they have to cover the young persons benefits, plus £1 an hour. My rough calculation makes this less than minimum wage, at least for a 40 hour week.

Now that may pique interest. But wouldn’t it just be displacing “real jobs”?

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Jim Pickard joined the lobby team in January 2008. He has been at the Financial Times since 1999 as a regional correspondent, assistant UK news editor and property correspondent.

Kiran Stacey is an FT political correspondent, having joined the lobby in 2011. He started at the FT as a graduate trainee in 2008, working on desks including UK companies and US equity markets before taking over the FT's Energy Source blog.

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Elizabeth Rigby, the FT's chief political correspondent, joined the lobby team in September 2010. Elizabeth has worked at the FT for more than a decade and was most recently its consumer industries editor.

Helen Warrell is the FT's UK reporter, covering home affairs, crime and policing. She joined the FT in 2008 and has spent time as a reporter in the Brussels bureau and more recently, editing the paper's Asia coverage on the world news desk.

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