Unemployment: Youth Unemployment

Lord Roberts of Llandudno Excerpts

Monday 18th November 2013 Lords Chamber

Asked by

[Lord Roberts of Llandudno]

To ask Her Majesty’s Government what steps they will take to create all-party consensus to tackle long-term youth unemployment.

[The Parliamentary Under-Secretary of State, Department for Work and Pensions (Lord Freud) (Con)]

My Lords, we are providing young people with the help they need to get back to work through Jobcentre Plus, the youth contract, the Work Programme, traineeships and apprenticeships. Our approach is working. Over the past year, the number of JSA claimants aged 18 to 24 has dropped by 84,800. We have also made £55 million available to cities for them to develop new and innovative ways of reducing long-term youth unemployment.

[Lord Roberts of Llandudno (LD)]

I am sorry that the Minister does not seem to share my deep concern about the problem of youth unemployment. Is he aware that 21% of young people aged between 16 and 24 are currently out of work? Does he know that long-term youth unemployment has more than quadrupled in the past 10 years? Some 115,000 18 to 24 year-olds have been out of work for two years or more. Whichever parties are in government in 2015, they will have to tackle long-term unemployment. We have tried to tackle this problem over the past 10 to 20 years. We must tackle it together and we must share the concern. If we cannot share the concern, is it not time to put our differences aside and to work together to resolve this nightmare situation for thousands of our young people? Will the Minister lead us in arranging some measure of co-operation?

[Lord Freud]

My Lords, the short answer is no. The policies of the previous Government were extraordinarily expensive. The Future Jobs Fund was introduced by the previous Government. At the time, I was in the department as an independent adviser, and that shocked me somewhat. It cost £6,500 for each job and half the people were back on benefits at the end. That is more or less the same performance as the work experience programme, which costs only one-20th.

I agree that the figures about which my noble friend is so concerned are a real concern and have been for a long time. I look at the figures for the unemployed and inactive youth. In 1997, it was 1.1 million youngsters. By 2010, after the longest boom in our history, it had risen to 1.4 million. Under this Government, in the worst recession since not the 1930s but the 1920s, it has come down 89,000 to 1.2 million. That is the way in which to have proper policies to handle the structural problem of youth unemployment.

Unemployment: Young People

Lord Roberts of Llandudno Excerpts

Thursday 20th June 2013 Lords Chamber

Asked By

[Lord Roberts of Llandudno]

To ask Her Majesty’s Government what action they are taking with other European Union member states to tackle youth unemployment.

[The Parliamentary Under-Secretary of State, Department for Work and Pensions (Lord Freud)]

My Lords, the Minister for Employment attended a ministerial meeting on youth unemployment in Madrid yesterday under the European initiative for growth and jobs. The Secretary of State for Work and Pensions will attend a follow-up in Berlin on 3 July. Youth unemployment is on the June agenda of both the European employment and social policy council and the European Council, and UK experts are members of the team reforming the Greek public employment service.

[Lord Roberts of Llandudno]

I think I thank the Minister for his Answer. He is telling us what is going to happen, but does he agree that with nearly a quarter of under-25s in the European area unemployed, the only way we can solve this is on a European-wide level? To tackle this crisis, should he not join Lib Dem MEPs and others who have called for the UK to make the most of the €6 billion EU youth guarantee scheme, which ensures that all under-25s receive continued education, a job, apprenticeship or traineeship? How would the Government use the money that would come from this European initiative?

[Lord Freud]

My Lords, clearly there are various initiatives. Some €6 billion across Europe is not a huge amount, and we are spending a great deal on our youth unemployment issues with the youth contract. If it emerges out of these meetings that one of the aspects of the European scheme is to encourage SMEs to take on youngsters by offering loans, clearly that is something that we will look at.

Homeless People: Night Shelters

Lord Roberts of Llandudno Excerpts

Tuesday 11th June 2013 Lords Chamber

[Lord Roberts of Llandudno]

My Lords, how much consultation was there before this judgment was put into effect? Following the point of the noble Lord, Lord Alton, who has done tremendous work in this area, is it not time that we issued clear, simple guidelines? Will the Minister write to every local authority explaining that not only have benefits been paid in the past but, in spite of the judgment, they can be paid now and that no one need lose their place in a night shelter?

[Lord Freud]

My Lords, the actual finding was that a particular night shelter in Anglesey could not be treated as a dwelling because it was, basically, a converted hall. There was no reserving and the people there came on a first come, first-served basis every night. It was a particular finding which might apply to a few other places. However, that is about how local areas find the best possible funding for their support for homeless people.

Child Poverty

Lord Roberts of Llandudno Excerpts

Tuesday 14th May 2013 Lords Chamber

[Lord Freud]

What is vital with child poverty is that we decide on how to tackle it. Under the last Government, we found that enormous amounts of money were spent on tackling it without hardly moving a figure. In the last few years of that Government, it hardly shifted. The noble Lord can look at the figures himself. We spend 3.6% of GDP on children and families; we are the second highest in the UNICEF measures, and we get precious little bang for our buck. We end up well down the table in performance for how children do. We need to work out how to solve child poverty and not worry about income transfers, which do not achieve the outcome.

[Lord Roberts of Llandudno]

My Lords—

[Lord Flight]

My Lords—

[Lord Hill of Oareford]

We have just had a Labour question, so it is this side.

[Lord Roberts of Llandudno]

Is the Minister aware that child poverty and poverty generally are not evenly spread across the United Kingdom? We have areas that are totally desperate. For instance, the south Wales valleys have twice the level of poverty than other places in the UK. What are the Minister and the Government doing to bridge that gap and somehow even out the issue of child poverty and other poverty in the United Kingdom?

[Lord Freud]

Yes, my Lords, there is a lot of variation around the country on child poverty. Again, I go back to the UNICEF report, which came out recently and which I found fascinating. Finland, which spends only 2.5% of its GNP on children and families, comes out very near the top. One thing that is so special about Finland is the emphasis that it puts on early years education, which seems to have a big impact there. We have to get to the causes of poverty and not just look at the pure measure.

Unemployment: Young People

Lord Roberts of Llandudno Excerpts

Wednesday 24th October 2012 Lords Chamber

[Lord Freud]

My Lords, the wage subsidy is paid after six months. It was introduced at a time when remarkably few came into the workforce, so we would expect to see the figure start to move in the months to come and will be publishing the information on that basis. As to the second question, that is not government policy, although it is a matter of debate what is the right level of support for youngsters in the housing market.

[Lord Roberts of Llandudno]

Is the Minister aware that the youth unemployment situation varies from area to area: in some places it is very severe; in other places it is more favourable? What are the Government going to do to concentrate any extra resources in those areas that are really in most desperate need?

[Lord Freud]

My Lords, we have a whole range of programmes now. All of them are much more individualised than previous programmes, so there should be a response to different regions so that the money goes where the need is. I have previously cited the figure for how many youngsters are inactive and unemployed. In the most recent set of figures, I am pleased to say that we have got that figure down to 1.36 million, which is below the level at the last election. So we are doing something about that terrible structural problem of the NEETs, which has been growing over the past decade.

Youth Unemployment

Lord Roberts of Llandudno Excerpts

Thursday 14th June 2012 Lords Chamber

[Lord Roberts of Llandudno]

My Lords, I, too, appreciate being able to take part in this debate, initiated by the noble Lord, Lord Adonis. What has struck me already is that we are all thinking in the same way. We are dreaming the same dreams and talking of young people not as statistics but as people with a personality, talents and skills that they can contribute to society. We are thinking about a generation of young people throughout the world who are without jobs and without a purpose in life. This can be a catastrophe not only for them but for society. I know from studying statistics on the Welsh valleys that with a high level of unemployment your level of health goes down, your dreams for young people change, and your whole attitude to society changes. We need to tackle this in a serious, cross-party way. I am glad that there has been no tribal discussion this morning.

The growth in youth unemployment between 2007 and 2012 was mentioned. It has occurred not only in the UK. In Denmark it is up from 7.1% to 15.1%; in the United States from 11.7% to 16.4%; in Poland from 18.5% to 26.7%; and in Spain from 19% to 51%. The problem is worldwide. In the UK it rose from 13.6% to 21.9%. We can see that the growth began before any talk of recession.

We can also see that unemployment is spread unevenly across the United Kingdom. The north-east has twice as many people out of work as the south-west. Birmingham has many areas where more than 20% of the population are out of work. In one constituency in Scotland, which happens to be held by the Liberal Democrats, only 1.2% of people are unemployed. There are dramatic differences. In Merthyr Tydfil and the Rhondda valleys, unemployment always touches 20%. It is unevenly distributed.

Areas that have already suffered from unemployment—I think of the Welsh valleys in the 1930s, where unemployment sometimes reached 40% or 50%—are again those that have been most affected. I suggest that one thing we could do is target areas in greatest need and make them areas of action on youth unemployment. We should target many resources to those areas.

Noble Lords have already mentioned the way in which structural unemployment in the UK has grown. In 2006 it was 13.6%, in 2010 it was 19.6% and today it is nearly 23%. This is a structural matter. I welcome the Government’s initiatives, but in a way they are like Elastoplast; they are not launching a big operation to treat a major need. Whichever Government take over at the next election, they will face the same problem of structural unemployment. Now is the time for us to forget party differences and for all of us to work together on this; otherwise we will be faced with a dilemma that could lead to serious consequences.

I think that I welcome the increase in the retirement age to 67 from 65. It does not affect me any longer, but it will create less opportunity for the younger age group to find work. Can we not have legislation that eases people out of work? When I was 65, I thought that I still had a few good years to go. Could we not reduce older people’s working hours to ease them out of employment while, at the other end, allowing youngsters to be tapered into it? Those who have many years experience in their job could mentor the young people entering that job market.

About a month ago I was with the Deputy Prime Minister in Llandudno at a meeting with apprentices. When we asked the apprentices what kind of careers guidance they had received in their schools, I was astonished to see that there was a thumbs down in nearly every instance. Careers guidance needs to be tightened. I know that there is legislation proposing to do that, but I would also like to ask the Minister how well we are doing in improving careers guidance so that youngsters are treated as people and not as statistics. When they go to Jobcentre Plus they should not be faced by some kind of mechanism or by the internet but by a person who takes an interest in them. Careers guidance should be there for them not only for their first job but for the years to come. It should be a lifelong experience of learning and talking over their problems, because people change and develop various skills and aptitudes as life goes on.

I have mentioned in this Chamber before that we need to have a Minister dedicated to tackling youth unemployment. Many strands need to be gathered together: the Department for Work and Pensions as regards retirement, the Department for Business, Innovation and Skills, the Department for Education and the devolved Administrations. We need to introduce a co-ordinated approach where everyone, perhaps under one Minister, can talk together and say, “Yes, we can bring those strands together more effectively than we do at present”.

I urge the Minister to agree that we should go for one Minister and establish action areas to tackle youth unemployment. We should consider easing in at the younger end and easing out at the older end. We should also ensure that personal skills and careers advice is given to youngsters so that they can look forward to a career that makes the best use of their talents and therefore contributes to the well-being of every one of us.

Youth Unemployment

Lord Roberts of Llandudno Excerpts

Monday 14th May 2012 Lords Chamber

[Lord Freud]

My Lords, let me just correct those figures. The number of people who are not students and who are unemployed is around 719,000. That figure is much too high but it is not near 1 million. We are doing an enormous amount to help young people into the jobs market, and we are doing it on a structural basis rather than making little fixes here and there.

[Lord Roberts of Llandudno]

My Lords, which Minister in the Government has specific responsibility for co-ordinating their struggle against youth unemployment? That is my first question; I think that I am allowed a second.

[Noble Lords]

No!

[Lord Roberts of Llandudno]

Then I am happy with my first question.

[Lord Freud]

My Lords, my colleague Chris Grayling is responsible for unemployment generally, and of course youth unemployment within that.

Health: Pneumoconiosis

Lord Roberts of Llandudno Excerpts

Wednesday 29th February 2012 Lords Chamber

[Lord Freud]

My Lords, I will look at the Act. The 2008 Act and the 1979 Act were intended to help people with this set of diseases. We are very conscious that some people miss out because they cannot trace claims. That is another matter that we are looking at very actively.

[Lord Roberts of Llandudno]

My Lords, I am grateful for the Act, and of course some who advocated it are present in the Chamber this afternoon. At its height, the Welsh quarrying industry employed some 17,000 quarrymen. As the years have gone by, the numbers suffering from pneumoconiosis and silicosis have fallen. How many people now have been diagnosed with these two diseases, which the Act was introduced to cover?

[Lord Freud]

As noble Lords may imagine, when I was asked this Question I tried to get more fine detail, but it simply is not available. There is a division between those suffering from mesothelioma and those suffering from other diseases; that is the only breakdown that we have. I cannot provide the information that the noble Lord requested.

Youth Unemployment

Lord Roberts of Llandudno Excerpts

Tuesday 14th February 2012 Lords Chamber

[Lord Freud]

My Lords, the noble Baroness might have been interested in one of the annexes in that report that indicated that actually there is concern about the national minimum wage. The point that she makes is towards the end of the report. There are a lot of measures to solve youth unemployment. I will pick up some of those that the noble Baroness mentioned. The first one is rebalancing the youth contract, to which she referred. We are already front-loading the wage incentives that we are introducing in April. We are doing more than the average in that period. We are trialling a community action programme for people who have been through the work programme, and we are looking at how we work in areas in an equivalent way to the youth employment partnerships.

[Lord Roberts of Llandudno]

My Lords, what are the Government doing to tackle long-term, structural unemployment? In 2007, 2.4 per cent of our young people were designated as long-term unemployed. Now the figure has risen to 4.6 per cent, and it is going upwards throughout the world. What have we got to offer young people in the long term to deal with structural unemployment? Are we doing anything seriously about that?

[Lord Freud]

First, long-term youth unemployment has not changed a lot. What changed is that youngsters were put on training programmes and, when they came off them, they were called newly unemployed. The underlying position has not changed very much in terms of long-term youth unemployment. I am not saying that that is not a real problem but I am saying that it has not grown as much as one might think, looking at the raw figures. Clearly we need to help youngsters in long-term unemployment, and one of the things that the work programme is specifically designed to do is to get support for youngsters on an individualised basis.

Child Poverty

Lord Roberts of Llandudno Excerpts

Tuesday 24th January 2012 Lords Chamber

[Lord Freud]

My Lords, I was trying to answer that question just now. The IFS projections are valuable and important, but they do not absorb changes in future policy and they do not make any assumptions as to behavioural change; many of the policies that we are driving are trying to get people back into work and reduce worklessness in that way. In particular, as regards universal credit, the report does not take into account the reduction in workless families that we are expecting.

[Lord Roberts of Llandudno]

My Lords, if the reforms going through the House at the moment are carried, many families lose their homes and children are put into care, the cost will be £2,900 a week for each child who is in care. Have the Government taken that into consideration?

[Lord Freud]

As noble Lords will know, we are not expecting that kind of change as a result of our policies. We have in that sense taken that into account.