Universities 'must help jobless'

12 April 2012

Universities should use a £120 million VAT "windfall" to help well-paid professionals who lose their jobs in the recession, Skills Secretary John Denham said.

Ministers fear white-collar workers may steer clear of the sort of Jobcentre-based state help package to be unveiled shortly by the Government.

But Mr Denham urged universities, which as charities will benefit from the cut in the VAT rate to 15% announced in last week's Pre-Budget Report, to use the extra cash to offer alternatives.

"I'm pleased that both the Universities of Brighton and Staffordshire have come forward and committed to use the extra funding to increase investment in the support they offer local businesses and staff," he said.

"We know that universities are thinking creatively about what support they can offer in these difficult times.

"In particular I think universities could be a key part of the help we give to those professionals who have recently been made redundant or concerned they are at risk of it.

"These individuals may have been well paid, and will often be reluctant to use the services Government provides to help people into work.

"It might be because they feel it is not targeted at them, it is not suitable for people with their qualifications or they are not eligible.

"I believe universities could plug this gap and I'm keen to hear from universities with ideas about how the funds freed through the VAT reduction could be used to provide targeted advice on careers, information on training opportunities and support networks."

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