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Business leaders challenge government over London youth services 'funding snub'

2 mins read Youth Work
Business leaders in London are challenging the government amid claims services supporting young people in the capital were left out of its allocation of £90m worth of Youth Investment Fund grants.
The lack of funding may leave young people unable to access career-enhancing opportunities, leaders argue. Picture: Eléonore H/Adobe Stock
The lack of funding may leave young people unable to access career-enhancing opportunities, leaders argue. Picture: Eléonore H/Adobe Stock

In March the Department for Culture, Media and Sport (DCMS) announced the 43 recipients of initial grants through the Fund, to build, renovate or extend youth facilities.

This included grants totalling more than £40m to youth charity Onside to improve centres in Bristol, Crewe, Preston, Grimsby and Salford. Meanwhile, Brighton Youth Centre received £4.4m to transform its facilities.

But after no grants were awarded to London services, business representative body London Chamber of Commerce and Industry (LCCI) has issued a challenge to civil society minister Stuart Andrew to ensure young Londoners are supported.

The LCCI is concerned that a lack of access to youth centres “means that young adults may not have access to the life changing opportunities necessary to career growth” adding that this “will exacerbate the issue of damaging skills shortages that stunt London business growth”. 

It cites Greater London Authority data that shows more than 600,000 children in London live in poverty, a problem that has worsened post-Covid and amid the cost-of-living crisis, the LCCI warns.

“We urge the government to reconsider the youth investment funding decision and to ensure that London receives the help it needs, along with the rest of the country, to ensure all young Londoners have the best start in life,” said LCCI chief executive Richard Burge.

“Whilst LCCI strongly supports the government’s levelling up agenda, this must mean levelling up London as well. We need to support young people in our capital to achieve their full potential.”

Research by the business leaders’ group has found that two in five firms in the capital believe a skills shortage is holding back growth and three in ten say it has reduced their turnover.

The fund is being delivered by Social Investment Business along with National Youth Agency (NYA), Key Fund and Resonance.

All applications are assessed by a grant panel and evaluated by young assessors recruited by the NYA

The fund is targeting 45 council areas and 600 wards where demand for support is high and provision is low. A total of £300m is available.

However, last month it was announced that applications for further funding will close in June after being “heavily oversubscribed”.

Projects funded through the programme must be completed by the end of March 2025, said the announcement.

It added: “Given the remaining life of the grant programme and the deadline for spending the funds and completing projects, the Youth Investment Fund will soon only accept bids that are seeking to deliver less complex, smaller projects that can be fully completed by 31 March 2025.”

A DCMS spokesperson said that areas within the London boroughs of Tower Hamlets and Barking and Dagenham are in the scope of Youth Investment Fund funding. 

"The Youth Investment Fund is paving the way for up to 300 youth facilities to be built or refurbished over the next two years in areas where need is high and existing youth provision is low, including in London. The government believes every young person deserves the best start in life and the Youth Investment Fund will provide access to the kinds of life-changing activities which expand their horizons and allow them to develop vital life skills," the spokesperson added.


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