The Government has announced the expansion of its Jobs Guarantee scheme from 18-21 to 18-24 and says this is expected to create more than 35,000 extra subsidised jobs.
It has also announced a new Youth Jobs Grant, through which businesses will receive £3,000 for each young person they hire aged 18-24 who has been on Universal Credit and looking for work for six months or more.
This is part of the Government’s response to the reported unemployment crisis among young people, with data showing that the number of young people not in employment, education or training is over 950,000 or around one in eight in that age group.
Employers will need to be careful to ensure that they balance any targeted hiring incentives with their duties under the Equality Act 2010.
There are different types of discrimination, including direct discrimination and indirect discrimination, which are likely to be most relevant here.
Direct discrimination
Direct discrimination occurs where a person is treated less favourably because of their age without an objective justification.
This could include setting an age limit or range for a particular job.
Indirect discrimination
Indirect discrimination occurs where an employer has a provision, criterion or practice (a PCP) that has a greater adverse impact on those in one age group than those in another and the employer cannot show that the PCP is objectively justified.
This could include restricting a post to “recent graduates”, since most recent graduates are likely to be of a similar age.
Age discrimination is slightly different to other types of direct discrimination in that there is no discrimination where the employer can show that its treatment of the employee is a proportionate means of achieving a legitimate aim.
Here, the likely legitimate aim would be to reduce youth unemployment and to benefit from the Government financial incentives available to employers.
However, employers will need to consider their circumstances and ensure they can justify any age discrimination on this basis.
Employers will also need to consider what will happen when the initiative’s funding comes to an end, particularly in light of upcoming changes to the Employment Rights Act, which will reduce the required service to bring an unfair dismissal claim to 6 months.
This is likely to be from January 2027.
The Equality Act 2010 also allows positive discrimination in certain circumstances, although this is not required.
This includes where certain groups with a protected characteristic, e.g., age, are disproportionately under-represented in its workforce.
The positive action must be a proportionate means of achieving the specific aim, which, in this case, would be to encourage greater participation by those with that specific characteristic, e.g., to employ more people of that specific age.
The explanatory notes state that “the extent to which it is proportionate to take positive action measures which may result in people not having the relevant characteristic being treated less favourably will depend, among other things, on the seriousness of the relevant disadvantage, the extremity of need or under-representation and the availability of other means of countering them”. (Paragraph 512.)
The permitted action to be taken in respect of recruitment or promotion is “treating a person (A) more favourably in connection with recruitment or promotion than another person (B) because A has the protected characteristic but B does not”.
However, this is only allowed where:
- A is as qualified as B to be recruited or promoted.
- The employer does not have a policy of treating persons who share the protected characteristic more favourably in connection with recruitment or promotion than persons who do not share it; and
- Taking the action is a proportionate means of achieving a legitimate aim.
This, therefore, limits the circumstances in which this exclusion could be used and is unlikely to be available to employers specifically looking to hire younger workers as a result of the Government incentives.
Employers will need to carefully consider how they make best use of the Government incentives and their circumstances and policies in respect of recruitment for any potential new roles.
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