Youth Guarantee
What recent progress he has made on implementing the youth guarantee.
As I said, earlier this spring we announced the expansion of youth hubs to all planned areas and the launch of phase one of the jobs guarantee for the long term unemployed, first in six areas and later to the whole country. From today, we are rolling out expanded employment support for young people on universal credit to all jobcentres in Britain. As I mentioned, from tomorrow, we are opening the youth jobs grant, which will give employers a £3,000 hiring bonus to take on a young person who has been out of work for six months or more.
The youth guarantee will play a crucial part in a city such as Peterborough where for too long, too many young people have been starting their adult life on benefits without the necessary skills. Just this month, the Minister for Social Security and Disability, my right hon. Friend the Member for East Ham (Sir Stephen Timms), cut the ribbon on the BRDG, a new partnership between Peterborough College, Inspire2Ignite and businesses to create more opportunities for young people, but we want to go further. Working with Inspire2Ignite, we are bringing together businesses, civic sector charities and others to launch the 3% club to cut the NEET level in Cambridgeshire to 3% and give young people the opportunities they need. Will my right hon. Friend explain how the Department can support frontline innovation and partnerships like that one? Will a Minister meet me with Inspire2Ignite and listen to the voices of young people as we turn this situation around?
I thank my hon. Friend for his commitment to expanding opportunity for young people in his constituency and to reducing the NEET youth rate. As he knows, I was pleased to open the Peterborough youth hub some months ago, and my Department is working with the Cambridgeshire and Peterborough strategic authority on the youth guarantee trailblazer. I congratulate Inspire2Ignite. I value positive feedback from the Minister’s visit to the BRDG site, and I will ensure that my hon. Friend gets a meeting with a Minister to discuss these issues further.
My local businesses such as Labman in Stokesley, Barkers and Sam Turner & Sons in Northallerton, and Metcalfe Farms in Leyburn are all excellent at providing opportunity for young people through apprenticeships. I note that the Government have introduced a welcome hiring incentive for the smallest businesses to take on young people, so will the Secretary of State congratulate my local businesses that are doing just that? Will the Government learn lessons from the kickstart scheme, which I believe the guarantee is somewhat modelled on, because we discovered that it is better to have an easy application process for the smallest businesses, to speed uptake and to ensure that they are aware of such initiatives? Such schemes are very beneficial, but we must ensure that businesses are aware of them and take them up to benefit young people.
I thank the right hon. Gentleman and send him commiserations for whatever has left him reliant on his crutches today. I am happy to congratulate the businesses he mentioned in his constituency. He raises a serious point: it is important not only to come up with the right policy, but to make it simple for businesses to use. That is something I have stressed to my officials; it is important that this scheme is simple to apply for. The money will be given in two instalments—one in the second month, and one in the fifth month—to ensure that hiring is sustained, but I entirely agree that good policy should be matched by a simple application process.
I call the shadow Minister.
I am not surprised that Labour Ministers and Back Benchers are patting themselves on the back for their youth guarantee, but it is a sticking plaster solution to a problem of their own creation. Rather than U turn on their triple whammy of increased business costs, higher national insurance, higher wages and higher business rates, the Government would rather use the state to subsidise jobs for the same young people who businesses can no longer afford to employ. Will the Secretary of State finally concede that no amount of Government work programmes can undo the damage that they have done to the labour market and to opportunities for young people?
In his review Alan Milburn considered that issue and said that, “the UK’s NEET crisis is much more long term and deep seated than any decisions taken in the last few years.”
As I said earlier, 400,000 more people are in work this year than last year, and the number of young people in employment is up since the election. Our policies are designed to help business rally to the cause of getting more young people into work, and I am pleased that we are introducing hiring incentives of £3,000 to help businesses take on a young unemployed person who has been out of work for six months or more. There is a good reason to target that group with opportunity, because the longer people are on those benefits, the greater the consequences that can have for their lives in the long term. Their whole future is in front of them, which is why it is right that we help them.