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To ask the Chancellor of the Exchequer what recent assessment he has made of the effect of fiscal policy on the level of youth unemployment.
To ask the Chancellor of the Exchequer what recent assessment he has made of the effect of fiscal policy on the level of youth unemployment.
[holding answer 18 November 2013]: The UK labour market is showing some signs of recovery. Youth unemployment excluding those in full-time education fell on the quarter, while the number of young people claiming JSA is lower now than it was in 2010.
This Government is committed to supporting long-term unemployed young people, which is why we launched the Youth Contract in April 2012. This will help half a million young people into employment.
What recent assessment he has made of the effect of fiscal policy on the level of youth unemployment.
What recent assessment he has made of the effect of fiscal policy on the level of youth unemployment.
The UK labour market is showing some signs of recovery. Youth unemployment, excluding those in full-time education, fell over the last quarter and the number of young people claiming jobseeker’s allowance is lower now than it was in 2010. The Government are committed to supporting long-term unemployed young people, which is why we launched the Youth Contract in 2012 and why we have increased the number of apprenticeships, with over 1 million starts so far.
The UK labour market is showing some signs of recovery. Youth unemployment, excluding those in full-time education, fell over the last quarter and the number of young people claiming jobseeker’s allowance is lower now than it was in 2010. The Government are committed to supporting long-term unemployed young people, which is why we launched the Youth Contract in 2012 and why we have increased the number of apprenticeships, with over 1 million starts so far.
The UK labour market is showing some signs of recovery. Youth unemployment, excluding those in full-time education, fell over the last quarter and the number of young people claiming jobseeker’s allowance is lower now than it was in 2010. The Government are committed to supporting long-term unemployed young people, which is why we launched the Youth Contract in 2012 and why we have increased the number of apprenticeships, with over 1 million starts so far.
What recent assessment he has made of the effect of fiscal policy on the level of youth unemployment.
I certainly accept that there is a great deal more that we have to do to get people off benefit and into work, but if the hon. Lady looks at the work experience programme within the Youth Contract, she will see that it is having a significant effect on the number of young people getting off benefit and into work, and at one 20th of the cost of the future jobs fund, which I think is good value for money.
I certainly accept that there is a great deal more that we have to do to get people off benefit and into work, but if the hon. Lady looks at the work experience programme within the Youth Contract, she will see that it is having a significant effect on the number of young people getting off benefit and into work, and at one 20th of the cost of the future jobs fund, which I think is good value for money.
The Chief Secretary refers to the Youth Contract, but does he not accept the assessment of the Government’s own social mobility adviser that it is having a limited impact on the
“appallingly high levels of youth unemployment”?
My hon. Friend is right. In fact, there are now more people in work, including more women, than ever before in our country’s history, and there are now more households in which someone works than in any year under the previous Government. There is a lot more to do, but that is a record to be proud of.
My hon. Friend is right. In fact, there are now more people in work, including more women, than ever before in our country’s history, and there are now more households in which someone works than in any year under the previous Government. There is a lot more to do, but that is a record to be proud of.
Is not the single most important measure we can take to tackle youth unemployment the creation of jobs? I therefore welcome the creation of over 1.5 million new jobs and 600,000 new apprenticeships and the news that last year this country had more small businesses than ever before. Does that not show that we have a Government who are seriously tackling youth unemployment, after it rose for 13 years?
As I said in answer to earlier questions, the Government have taken forward a package of measures. The youth contract, which is helping half a million young people, the massive expansion and improvement in the quality of apprenticeships, helping young people all around the country, and the Work programme make up a proper package of measures to do what the hon. Gentleman and I agree about—try to help more young people off benefits and into work. The problem has been building up for many years, and he should be a bit more humble about it.
As I said in answer to earlier questions, the Government have taken forward a package of measures. The youth contract, which is helping half a million young people, the massive expansion and improvement in the quality of apprenticeships, helping young people all around the country, and the Work programme make up a proper package of measures to do what the hon. Gentleman and I agree about—try to help more young people off benefits and into work. The problem has been building up for many years, and he should be a bit more humble about it.
The youth employment rate is lower now than in 2009, with a shortfall of nearly 400,000 jobs, so why are the Government continuing to resist a tax on bank bonuses that would help put young people back into work?
The UK labour market is showing signs of recovery. More people are in work than under any previous Government.
The UK labour market is showing signs of recovery. More people are in work than under any previous Government.
In this matter, a wee bit of humility from the Labour party would not go amiss, on the basis that youth unemployment has been a persistent problem in this country for many years—youth unemployment has been rising since 2003 or 2004. I note that, in the hon. Gentleman’s constituency between December 2010 and December 2012, youth unemployment fell by 11.8%. Through measures such as the Youth Contract and the Work programme, we are deploying considerable support for the task that he and I agree on, which is getting more young people into work.
In this matter, a wee bit of humility from the Labour party would not go amiss, on the basis that youth unemployment has been a persistent problem in this country for many years—youth unemployment has been rising since 2003 or 2004. I note that, in the hon. Gentleman’s constituency between December 2010 and December 2012, youth unemployment fell by 11.8%. Through measures such as the Youth Contract and the Work programme, we are deploying considerable support for the task that he and I agree on, which is getting more young people into work.
The Chief Secretary says the economy is healing but he should take more seriously the fact that youth unemployment is growing again, with nearly 1 million young people unemployed for the last year. Will he explain why, in the past year, youth unemployment has grown by a staggering 355% since the Work programme was introduced? Is that not disgraceful? Should not the Government prioritise a compulsory jobs guarantee paid for from a bank bonus tax?
I am afraid that I had not noted the comments of the Archbishop of Toledo, but I did notice the successful G7 Finance Ministers meeting.
I am afraid that I had not noted the comments of the Archbishop of Toledo, but I did notice the successful G7 Finance Ministers meeting.
Did the Chief Secretary to the Treasury note that, while Finance Ministers seemed remarkably cheerful in Aylesbury last weekend, the Archbishop of Toledo was warning that their fiscal policies were threatening to cause social breakdown and the overthrow of democracy in Spain and much of southern Europe?
I cannot agree with anything the hon. Gentleman says. The truth is that this Government are creating more opportunities for young people to take steps towards work than any previous Government. Let me give an example from the Department of my right hon. Friend the Secretary of State for Business, Innovation and Skills. One million apprenticeship starts—a 50% increase on the previous Government—are creating valuable opportunities for young people to gain experience in the workplace and employment afterwards. The hon. Gentleman should welcome and support those efforts, not condemn them.
I cannot agree with anything the hon. Gentleman says. The truth is that this Government are creating more opportunities for young people to take steps towards work than any previous Government. Let me give an example from the Department of my right hon. Friend the Secretary of State for Business, Innovation and Skills. One million apprenticeship starts—a 50% increase on the previous Government—are creating valuable opportunities for young people to gain experience in the workplace and employment afterwards. The hon. Gentleman should welcome and support those efforts, not condemn them.
Fiscal policy is not the only thing providing a difficulty for young people. Welfare policies mean that they have to stay at home and cannot move to places where there might be jobs. The policy on youth services, which are being dramatically cut throughout the country, means that young people are not getting the skills that might make it possible for them to get into work. Is not the truth of the matter that the only people in this country who are doing anything to get young people into jobs are those in the Labour-run Welsh Assembly?
I wholeheartedly agree with my hon. Friend. The Youth Contract, which was launched in April, supports 500,000 young people into employment through a range of measures, including an in-work subsidy and access to work experience. Alongside the 1 million apprenticeships that my right hon. Friend the Secretary of State for Business, Innovation and Skills is starting during this Parliament, the Youth Contract offers a range of new opportunities for young people, which are necessary in getting more young people into work, which the House agrees is vital for the country.
I wholeheartedly agree with my hon. Friend. The Youth Contract, which was launched in April, supports 500,000 young people into employment through a range of measures, including an in-work subsidy and access to work experience. Alongside the 1 million apprenticeships that my right hon. Friend the Secretary of State for Business, Innovation and Skills is starting during this Parliament, the Youth Contract offers a range of new opportunities for young people, which are necessary in getting more young people into work, which the House agrees is vital for the country.
The Archbishop of Toledo might well have been concerned about high rates of youth unemployment in Spain, which are much higher than they have ever been in this country, but does my right hon. Friend agree that, despite the fact that the problem, as he has just said, has been intractable for more than decade, the Deputy Prime Minister’s Youth Contract gives an opportunity for young people to have work experience in the private sector, from which most of the growth and job opportunities of the future are likely to come?
The UK labour market is showing signs of recovery. More people are in work than under any previous Government.
The claimant count in Halifax in December 2012 was 4,328. The UK has a lower rate of unemployment than either the US or the euro area and, as the Chancellor said earlier, we have created more than 1 million jobs in the private sector since 2010.
The claimant count in Halifax in December 2012 was 4,328. The UK has a lower rate of unemployment than either the US or the euro area and, as the Chancellor said earlier, we have created more than 1 million jobs in the private sector since 2010.
The claimant count in Halifax in December 2012 was 4,328. The UK has a lower rate of unemployment than either the US or the euro area and, as the Chancellor said earlier, we have created more than 1 million jobs in the private sector since 2010.
Of course I recognise what the hon. Lady says and that unemployment is a concern right across our economy. Unemployment rates across the economy have been coming down. She refers to the experience in her constituency. Since 2008-09 the number of apprentices in Halifax doubled, so some of the measures that the Government are taking, such as the investment in apprenticeships and the Work programme, are making a difference to her constituents. The most important thing that we can do to continue to support unemployment moving in the right direction is to maintain the credible fiscal policy that this Government have put in place, and not give up on it, as the Opposition would.
Of course I recognise what the hon. Lady says and that unemployment is a concern right across our economy. Unemployment rates across the economy have been coming down. She refers to the experience in her constituency. Since 2008-09 the number of apprentices in Halifax doubled, so some of the measures that the Government are taking, such as the investment in apprenticeships and the Work programme, are making a difference to her constituents. The most important thing that we can do to continue to support unemployment moving in the right direction is to maintain the credible fiscal policy that this Government have put in place, and not give up on it, as the Opposition would.
I thank the Minister for that reply, but in reality the Government’s record on unemployment in Halifax since 2010 is that the number out of work has risen from 7.3% to 9.2%. Halifax cannot sustain those levels of unemployment for much longer. Can the Minister understand how angry people are? What action is he taking on unemployment in Halifax?