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Firms 'should be paid to offer non-graduate jobs'

Business should be rewarded for providing internships for those seeking jobs who have not been to university, one organisation has argued.

Independent think tank Demos stated the government can save money this way by giving companies £1,000 to £5,000 for each young, disadvantaged member of staff they take on.

This amount is much less than the £120,000 that each Neet (not in employment, education of training) person costs the state annually.

Jane Slowey, chief executive of Foyer Federation, which published Demos' report, identified another benefit of the scheme.

"Targeted investment in talent-building approaches can reap significant returns ... by helping young people and their services and communities to unlock unused potential," she explained.

If the programme came into use, the government would pay employers when their intern gained stable employment, so long as it was within 12 months of completing their placement.

This comes after the organisation recommended financial rewards for employers that rarely moved staff on to benefits through redundancy.