BUSINESSES across Hampshire are to be offered cash incentives to hire the long-term unemployed as part of a package of measures announced by Prime Minister Gordon Brown.

More than 2,300 individuals in south Hampshire and the Isle of Wight have been claiming Jobseeker’s Allowance (JSA) for more than six months and it is these people the Government is targeting with its “golden hello” scheme.

Under the £500m plan, which will come into effect in April, firms which recruit from the ranks of those who struggle to get off benefits will receive about £1,000 – and up to £2,500 if they train them too.

The scheme, which could potentially inject more than £5m into the local economy, will be accompanied by funding for more apprenticeships as well as “intensive” support for the growing ranks of unemployed, such as work-focused interviews and help to upgrade skills.

Mr Brown, who unveiled the measures yesterday at a jobs summit in London, told an audience of 150 business, union and voluntary sector leaders: “The best form of real help now is to equip people with the skills and help people into the jobs for the future.

“We know that any action we take has costs. But the biggest cost of all would be the cost of doing nothing. Failure to act now would mean a deeper and longer recession.”

Figures published by the Department for Work and Pensions showed that on the latest count, in November, 2,310 people had claimed JSA for more than six months. They included 965 people in Southampton.

Separate figures showed that in the same month 6,358 vacancies were posted in Jobcentre Plus offices across the south. Since these posts usually represent just one third of all jobs available in the economy, the total number of vacancies could be approaching 20,000.

Across the UK, 1.8 million are out of work, but this figure is expected to rise over coming months as the impact of the growing economic crisis and the collapse of high street chains is felt.

Shadow Work and Pensions Secretary Chris Grayling said: “We have been arguing for the Government to pay subsidies to employers who take on people who are out of work.

“We therefore welcome today’s announcement but what the Government now needs to do is adopt our plans for a National Loan Guarantee Scheme to help existing businesses and to protect jobs.”