Youth Unemployment
What assessment she has made with Cabinet colleagues of the potential impact of her Department’s policies on levels of youth unemployment.
UK employment levels are strong by historic and international standards. The hon. Member is right, though, to highlight a structural challenge when it comes to young people being out of work and, for that matter, education. That is why we have committed £2.5 billion over the next three years to the youth guarantee, helping to deliver up to 500,000 opportunities to earn and learn.
Some 42% of employers have cut back on graduate recruitment, and across Bromsgrove and the villages there has been a 25% increase in youth unemployment over the last two years. With unemployment undoubtedly weighing heavily on the Chancellor’s mind, does she regret the choices she has made and the impact that they are having on young people’s futures?
The background to this is that employment is up 920,000 since the election. As I just said, there are structural challenges when it comes to youth unemployment. I gently refer the Tories to the fact that we saw a 250,000 increase in the number of those not in education, employment or training in the last three years that they were in office, and youth apprenticeships saw a 40% fall when they were in office. This Government are getting on with supporting young people. That is why this month will see the introduction of a £3,000 hiring bonus for firms that take on someone aged 18 to 24 who has been looking for work for six months.
What is the Minister’s assessment of the unemployment issues for graduates? Will he and the Treasury team pledge to consider carefully the evidence that the cross party Treasury Committee took from thousands of graduates, and come up with a fairer system that equalises plans, so that the year in which graduates enrolled in university does not matter, and graduates pay more or less the same for their graduate loan?
My hon. Friend has done significant campaigning on this issue in recent months, and we all know why. The Government obviously inherited the student loan system situation, and we have already acted to cap the interest rate on student loans. We look forward to reading her Committee’s report, and, I am sure, to her ongoing campaigning on this issue.