Jobseekers allowance extended to internships

In the current economic downturn unemployment rates are steadily rising and it’s the university graduates who are expected to feel the brunt of it. Currently the unemployment rate of Graduates with a degree is higher than the average for the rest of the UK. Recent research by the National Union for Students (NUS) has also shown that 80% of undergraduate students are either “concerned” or “very concerned” about their job prospects after leaving university.

At the end of April, The Department for Innovation, Universities and Skills announced a change to benefit laws to make it possible to claim jobseekers allowance whilst undertaking an internship in an attempt to improve graduates’ prospects.

It was already possible for graduates to claim benefits whilst they were volunteering or training if they had been receiving jobseekers allowance for the previous six months whilst looking for employment. The change to the jobseekers allowance rules means that anyone on an unpaid placement of up to 13 weeks can now receive financial help.

This decision is another measure the Government has decided to take to try and combat the rising number of unemployed graduates caused by the recession. Economists predict the number of the unemployed to rise to 3 million by the end of next year, and its graduates who will be suffering most from the employment crisis.

Earlier this year it was predicted that businesses were expected to employ 17% less skilled staff this year.

The decision to extend the allowances available was decided by Universities and Skills secretary, John Denham, and the Work and Pensions Secretary, James Purnell.

Mr Denham told the Daily Telegraph: “Our initiative will not be the only or even the main way of creating and matching graduates to internship opportunities. It will, however, add to the way such schemes can be offered and will ensure more young people can benefit from one next year.

“The schemes will enable motivated graduates to add to their skills by applying their leaning in a real work world.”

The Government is hoping to encourage smaller businesses, charities and public sector bodies to offer internships to graduates, not only larger companies. This will create more opportunities for graduates and help them improve their skills during the recession.