The Minister of State, Department for Education and Department for Work and Pensions (Baroness Smith of Malvern) (Lab)
My Lords, the Government’s youth guarantee will increase opportunities for 16 to 24 year- olds to make them work-ready and equipped to thrive. Success will be measured by improvements in employment outcomes, a reduction in economic inactivity, and an increase in participation in education and training. We will monitor these outcomes nationally for all youth guarantee participants. This will build on the already commissioned evaluation of eight youth guarantee trailblazers and a planned full process evaluation of the jobs guarantee.
Baroness Curran (Lab)
I thank the Minister for that reply. I am sure she will agree that the youth guarantee scheme could be a vital reform to the welfare state, offering a lifeline to young people who are currently shut out from the rewards of work and learning. Can the Minister ensure that the youth guarantee scheme is focused and well managed and that updates are reported to Parliament? More importantly, I make a plea to her that the Government communicate this scheme positively, and do so directly to young people and their communities.
Baroness Smith of Malvern (Lab)
My noble friend is right that, while all unemployment is devastating for the individual, for young people to not be able to access the workplace, or education and training, is a waste of their talents at the most important part of their adult lives. That is why we are absolutely committed to ensuring successful delivery of the youth guarantee and the jobs guarantee. It is a top priority for the Government. The department will provide updates on the development and delivery of the youth guarantee. My noble friend is right about the need to raise awareness. That is why we will partner with national and local organisations, and employers, to increase awareness of the youth guarantee so that young people and their communities understand the support and opportunities available.
Lord Harrington of Watford (Non-Afl)
My Lords, I declare my interest as chairman of Make UK, which has 26,000 manufacturing companies that belong to it and is a major apprenticeship provider. As the Minister is very aware, because we have spoken to her on the subject, currently, apprenticeships in manufacturing are declining across the UK because of the big gap between the money that the apprenticeship levy provides and the actual cost of it, as well as rising employment costs. Given that the industrial strategy is committed to reversing this trend and increasing the funding bands, when will the Government follow through on their commitment, which is really needed for the youth guarantee scheme to be a success?
Baroness Smith of Malvern (Lab)
The noble Lord is right that I have been able to speak to Make UK about the important role of apprenticeships in delivering engineering skills for young and older people. I understand the concerns raised about the funding rates for engineering apprenticeships. That is why, as I said when I met Make UK, we will continue to monitor that in order to ensure that they meet the costs of training. We will continue to find other ways to encourage people on to apprenticeships, such as removing some of the bureaucracy associated with them, supporting the reform of end-point assessment, and removing the requirement for separate maths and English qualifications for adults.
Lord Palmer of Childs Hill (LD)
My Lords, although we welcome the youth employment scheme, can the Minister say whether the Government will monitor the employment of 26 and 27 year-olds? If you are a small business and you can get someone at 24 for nothing, will that reduce your employment of 26 to 27 year-olds? We do not want to displace the unemployment from the 24 year-olds to the 26 year-olds.
Baroness Smith of Malvern (Lab)
Of course we do not want to displace the unemployment, but, as I suggested in responding to my noble friend, there is something particularly challenging and important about young people who do not even get the opportunity to get into the workforce and to have the chance of a successful future. That is why, although there will always need to be an age cut-off for a scheme, the youth guarantee, with its additional investment from the Budget and its focus on support from school onwards, will be effective in getting young people into the workplace, and keeping them there when they get to the age of 25 or 26 as well.
Baroness Stedman-Scott (Con)
My Lords, the policies of the Government in relation to the Employment Rights Act and the implications of the tax increases are directly undermining opportunities for young people. In all seriousness, will the Minister urge colleagues in the Treasury and the Department for Business and Trade to reconsider these choices? If the Minister is going to go to the Treasury, I have no doubt that there are people in this Chamber who would be very happy to go with her to try to make the case.
Baroness Smith of Malvern (Lab)
The noble Baroness, even when partly incapacitated, is always forthright in her questions—I wish her good luck with her recovery.
If it were the activities of this Government that were responsible for youth unemployment and the numbers of young people not earning and learning, we would not have inherited the frankly disgraceful levels of young people not earning and learning at the point at which we came into government. The difference is that, in our case, we have been to the Treasury; we have got from the Chancellor an investment of £1.5 billion into the youth guarantee, to help young people back into work, and to ensure that we can provide 50,000 more apprenticeships for young people. That is the effective way to ensure that young people get the opportunity to start their working lives in the way that we would all want them to.
Lord Hampton (CB)
My Lords, as a teacher, I am quite interested in how the Government will quality control jobs. Back in the day, when we used to do employment fortnight, those children who did not have direct access to parents or friends who had good places they could do jobs at ended up working in charity shops, which was all quite meaningless.
Baroness Smith of Malvern (Lab)
I suspect that all those people working in charity shops do not think their work is meaningless. I think the noble Lord is making a point about how we ensure that, when we provide, for example, the two weeks’ work experience that the Government are committed to providing for all young people, we do so in a way that gives them high-quality opportunities. I can assure him that schools focus on that, as he will know, as do mayoral combined authorities. We will ensure that, as we deliver that commitment, we are working with all of them to make sure that these are high-quality opportunities for young people.
Baroness Caine of Kentish Town (Lab)
My Lords, as my noble friend the Minister has agreed, this vital new guarantee requires the enthusiastic commitment of employers, and I would say that is particularly important in key growth sectors where we are expecting employment to grow. Can she outline what plans are in place to secure that involvement, including in those sectors with high levels of SMEs and microenterprises—for example, the creative industries?
Baroness Smith of Malvern (Lab)
We need employers to recognise the benefits that providing opportunities for young people can bring, whether through placements or taking young people on as apprentices, or through giving them opportunities through the jobs guarantee. That is why we are working closely with employers and the representatives of employers. It is why, for example, with respect to the jobs guarantee, we will provide full funding for employers to take young people on at the national minimum wage for 25 hours a week. It is why, when it comes to apprenticeships, we already provide a national insurance contribution break for young people and, in the case of foundation apprenticeships, £2,000 for the employer to take on those young people.
Lord Bailey of Paddington (Con)
My Lords, as I am sure the Minister is aware, most young people are looking for permanent employment. What proportion of young people will be moving on into permanent employment? Will the Government be tracking the quality of that employment—namely, salary and progression?
Baroness Smith of Malvern (Lab)
It will certainly be the case that in the evaluation we will want to track how many young people are able to move into permanent employment. I agree with the noble Lord about that. Evaluations of job support schemes in the past have suggested that there is a positive movement into long-term employment from these types of schemes.
Lord Mohammed of Tinsley (LD)
My Lords, I am all for opportunities for young people, but I challenge the Minister on why, particularly, young people on universal credit have to wait 18 months before accessing support. Why can we not move this forward, like we do for younger people who are in danger of being NEET, to six months?
Baroness Smith of Malvern (Lab)
They will not have to wait 18 months. The backstop at 18 months is a guaranteed job of six months. Before they get to that point, they will have received support much earlier on from specialist work coaches, access to the additional 300,000 opportunities through either a swap or work experience to try work, and the support of other organisations to help tackle the issues that may be keeping them out of the workplace in the first place.