A Labour government scheme that would see UK firms receive thousands of pounds for hiring foreign workers is set to be unveiled, prompting criticism over its timing amid rising youth unemployment figures.
Announced on Wednesday by Chancellor Rachel Reeves and Business Secretary Peter Kyle, the program would provide subsidies of up to £25,000 for high-growth companies bringing in skilled overseas staff. Individual firms could claim around £5,000 per foreign worker, with an overall annual cap of £25,000 per business, per GB News.
The funding is aimed at supporting recruitment in sectors such as tech, digital industries, life sciences and clean energy. Officials say it is part of a wider effort to help “high-potential international businesses set up in the UK more quickly” and expand operations.
Alongside the subsidy, ministers are also preparing to speed up visa processing for “Expansion Worker” sponsor licences. These visas allow overseas companies to send staff to the UK to establish temporary operations. Processing times are expected to drop to around 10 days, down from several weeks.
Rachel Reeves said: "We are backing the UK's most ambitious firms to start, scale and stay here - with the finance, talent and support they need to succeed."
However, the announcement comes as concern grows over youth unemployment. A recent review linked to Alan Milburn found more than one million 16-to-24-year-olds in Britain are now not in education, employment, or training.
Criticism of the policy has focused on its impact on entry-level opportunities. Migration Watch UK told The Telegraph it "now seems the Government wants to make the backdoor into Britain even cheaper and more accessible". It also said: "This will be a disaster for young British workers who already face the worst jobs market in a generation.
"It comes in addition to the so-called 'Skilled Worker Visa' which is already abused to import supermarket staff and takeaway drivers, amongst others – exactly the sort of entry-level work young Britons used to do."
Callum Price of the Institute of Economic Affairs said: "The Government would be far better off making it easier for businesses to hire people, and making the UK an attractive place for high-skilled workers across the board, than spending taxpayer money on trying to pick limited winners."
Separately, Business Secretary Peter Kyle is expected to introduce a “concierge service” for scaling firms, modelled on systems used in France, Singapore and the US. The service would aim to help businesses navigate government processes more quickly.
Penny Verbe has been appointed as the Government’s new Scale Up Adviser, saying she looked forward to "help ensure that the UK’s most innovative businesses can scale, stay and thrive".
A government spokesperson said the measures are intended to address skills shortages and support domestic workers, adding: "We are helping high-growth UK firms access critical skills where there are clear gaps in the UK workforce, enabling them to scale up, invest and create jobs here in the UK – strengthening, not undermining, opportunities for the domestic workforce.
"We are backing British workers, including graduates, with £2.5bn in youth employment support, more apprenticeships and targeted action to help people into good jobs."
Announced on Wednesday by Chancellor Rachel Reeves and Business Secretary Peter Kyle, the program would provide subsidies of up to £25,000 for high-growth companies bringing in skilled overseas staff. Individual firms could claim around £5,000 per foreign worker, with an overall annual cap of £25,000 per business, per GB News.
The funding is aimed at supporting recruitment in sectors such as tech, digital industries, life sciences and clean energy. Officials say it is part of a wider effort to help “high-potential international businesses set up in the UK more quickly” and expand operations.
Alongside the subsidy, ministers are also preparing to speed up visa processing for “Expansion Worker” sponsor licences. These visas allow overseas companies to send staff to the UK to establish temporary operations. Processing times are expected to drop to around 10 days, down from several weeks.
Rachel Reeves said: "We are backing the UK's most ambitious firms to start, scale and stay here - with the finance, talent and support they need to succeed."
However, the announcement comes as concern grows over youth unemployment. A recent review linked to Alan Milburn found more than one million 16-to-24-year-olds in Britain are now not in education, employment, or training.
Criticism of the policy has focused on its impact on entry-level opportunities. Migration Watch UK told The Telegraph it "now seems the Government wants to make the backdoor into Britain even cheaper and more accessible". It also said: "This will be a disaster for young British workers who already face the worst jobs market in a generation.
"It comes in addition to the so-called 'Skilled Worker Visa' which is already abused to import supermarket staff and takeaway drivers, amongst others – exactly the sort of entry-level work young Britons used to do."
Callum Price of the Institute of Economic Affairs said: "The Government would be far better off making it easier for businesses to hire people, and making the UK an attractive place for high-skilled workers across the board, than spending taxpayer money on trying to pick limited winners."
Separately, Business Secretary Peter Kyle is expected to introduce a “concierge service” for scaling firms, modelled on systems used in France, Singapore and the US. The service would aim to help businesses navigate government processes more quickly.
Penny Verbe has been appointed as the Government’s new Scale Up Adviser, saying she looked forward to "help ensure that the UK’s most innovative businesses can scale, stay and thrive".
A government spokesperson said the measures are intended to address skills shortages and support domestic workers, adding: "We are helping high-growth UK firms access critical skills where there are clear gaps in the UK workforce, enabling them to scale up, invest and create jobs here in the UK – strengthening, not undermining, opportunities for the domestic workforce.
"We are backing British workers, including graduates, with £2.5bn in youth employment support, more apprenticeships and targeted action to help people into good jobs."
