National audit, tax, advisory and consulting firm Crowe has welcomed the government’s £1 billion package designed to bring 200,000 young people into work.

But the welcome comes with a caveat.

Chris Mould, corporate partner in Crowe’s Cheltenham office, said: “This is a really welcome development, as long as it does not create an artificial cliff edge based on age.”

A new Youth Jobs Grant offers businesses £3,000 for each 18-24-year-old hired who has been unemployed for six months or more.

And a new apprenticeship incentive gives SMEs £2,000 for every new 16-24-year-old they employ. The existing jobs guarantee, offering a six-month role to Universal Credit claimants unemployed for 18 months, has been extended to include those up to 24 years old.

Mould said: “The concern is that employers now will tend to favour younger employees – at the expense of those over 24.

“They will get a grant for 16-24-year-olds, which will go some way to offsetting last year’s Employers NI increase, but someone aged 25 or over may be overlooked in favour of a grant attracting 24-year-old.

“We would have liked to see similar support and incentives for older workers who have been unemployed for six months or more.”

He welcomed the new apprenticeship units, which include AI leadership, electric vehicle charging point installation and maintenance, electrical fitting and assembly, mechanical fitting and assembly, permanent modular building assembly and solar PV installation and maintenance welding.

“A shortage of skilled workers is often a major barrier to growth and is estimated to be holding back up to a quarter of family businesses.

“The decision to make short, bite-sized training courses accessible through the new Growth and Skills Levy is a big step in the right direction too. Family firms and SMEs in general have often found it hard to access and utilise funding through the previous Apprenticeship Levy, so this a most welcome move.”