Youth Unemployment

Debate between Lord Grayling and Iain McKenzie

Wednesday 9th November 2011 Commons Chamber

[Chris Grayling]

I shall be delighted to talk about some of the specific measures we are taking, but before I do that, let me address the issue about the future jobs fund. It had two key flaws. The first was that it was entirely in the public and voluntary sectors; it did not take young people into the private sector, where there has been employment growth over the last 12 months. That was a fundamental flaw. The other one, in a world where, as the right hon. Member for Birmingham, Hodge Hill said, there was no money left, was that the FJF was by far the most expensive scheme; it was four times as expensive per job outcome as the new deal for young people, and massively more expensive than previous schemes. We have developed a better package of support; it will be more effective and more cost-effective. Through the various schemes that I am about to explain, I estimate that we shall provide support for about 350,000 young unemployed people over the next two years, to make sure that nobody is left without the help they need to try to get themselves into work.

[Mr Iain McKenzie (Inverclyde) (Lab)]

The Minister has referred to a number of issues about the future jobs fund. In Inverclyde, when I was council leader we were the second most effective constituency in using the fund, putting some 400 of our young people into employment, mostly in private sector jobs. In Inverclyde, we are putting our money where our mouth is; on our own backs, we are continuing the future jobs fund for a further year, with the target of putting 500 young people into jobs. The future jobs fund worked, and it is still working.

[Chris Grayling]

As the hon. Gentleman knows, this Administration believe in localism, and a local authority is free to do what it wants to support the unemployed. I welcome any local partnerships to deliver that. I would still say, however, that the reality is that the future jobs fund cost massively more than comparable schemes, and we believe that the package we put in place is more cost-effective and likely to deliver better success rates.