Skills and Post-16 Education Bill [HL]

Baroness Fox of Buckley Excerpts

Committee stage
Monday 19th July 2021 Lords Chamber

[Lord Addington (LD)]

My Lords, once again I find myself stepping into the shoes of my noble friend Lord Storey. Regardless of how comfortable those shoes are, I will do my best. This is something where we are saying that the Government have done something pretty well and asking if they will carry on doing it—that is the essence of what is in front of me. The Kickstart scheme seems to have started well and at the right time because, when any job market goes into a state of convulsion, the people who are shed are the young and less qualified. You take a chance on people coming into the job market, but you might not want to take quite that degree of chance.

Kickstart seems to have done well. It is not perfect, but it would surprise nobody who has been looking at this for any length of time that, when a new government scheme comes in, smaller firms have trouble accessing it. We would expect that, to be honest. Things like this are smoothed out by planning them, looking at them and making sure they go on. If the Government are not prepared to do that, we need an explanation of why because, with the job market in flux, as I said before, we will need things like this to get people involved. If the Government do not like what they are seeing in this scheme, they should tell us why. It was supposed to end in December, but I think we have 150 jobs promised, from the information I have. The CBI has come out and said that it is a good scheme which it likes, and others have said that before. So why are the Government not taking that on board and improving it? We could use it for a little longer.

The amendment itself basically just calls for the Secretary of State to review and consider the Kickstart scheme:

“The review under subsection (1) must consider … extending the lifetime of the current scheme; and … extending the criteria of those eligible to benefit from the scheme beyond those receiving universal credit.”


The Government had a good idea and did some good work. It seems to be working, so can they now build upon it, not stop it? That is essentially what this is about. I beg to move.

[Baroness Fox of Buckley (Non-Afl)]

My Lords, I broadly support Amendment 87, although I will probe rather more on what we could get out of Kickstart moving forward and what some of the issues are. I started off as quite an enthusiast for KickStart, but for me it has failed to live up to its promise. However, there is a chance that by reviewing it, it could be made more positive and make a positive contribution to this Bill. That is why I am keen on the amendment. If the last time I spoke regarding the Bill I worried out loud about the dangers of too short-term an approach to skills and training and too much power being given to employers to define what skills are needed, conversely I now note that sometimes, short-term and immediate issues, from the threat of mass youth unemployment to skills shortages in the here and now, require a degree of urgency and a more central role for employers. Sadly, Kickstart has slightly missed out on this and does neither.

To remind ourselves, the challenges facing young people in the labour market in the here and now have been exacerbated by Covid-19. Policy decisions have effectively closed down whole sectors in which young workers are overrepresented. The highest job losses have been in accommodation and food, wholesale and retail, and arts and entertainment—the three industries with the highest percentage of young people in the workforce. We must recognise that the non-Covid collateral damage of lockdown is indeed young people’s job prospects. In that sense, Kickstart should have been a godsend, but it is rather misnamed. It sounds urgent and dynamic, but the take-up has been sluggish. Despite the promise of a quarter of a million new jobs for the young and claims of 195,000 jobs approved, fewer than 20,000 people have started jobs created by the scheme, and even with scrapping the ludicrous requirement for employers to create 30-plus opportunities, forcing the SMEs into a bureaucratic labyrinth of those gateways, it has not really speeded things up enough.

I would like a review of this because there is still too much red tape. To quote a couple of employers, they are keen to avail themselves of this scheme, but it has been “like pulling teeth” and “extremely frustrating”. They say that the application process is lengthy with a lot of paperwork and an extremely saturated line of communication. I have not given up on Kickstart and I am glad to see, as the noble Lord just mentioned, that the CBI seems to be united with the TUC and a lot of business federations in still seeing Kickstart as useful, but it needs some time. As the amendment argues, I am mystified as to why this scheme would end in December 2021, since it is only just kicking in.

The DWP says that the hiring process will be ramped up as lockdown unwinds, unlocking key sectors, but as unlocking has been constantly delayed, only starting today and even then hesitantly, if the Government close Kickstart in December, they are giving it less than half a year to have any real effect. That is important. The amendment also tries to free up Kickstart and not confine it to those in receipt of universal credit. This is an important point, for a number of reasons. The young, most in need of work and training related to employment progress, are often working, but they might be on zero-hours contracts or picking up part-time work stacking shelves. Therefore, the initiative should not exclude them from Kickstart. We also know from the latest furlough data that the young are more likely to be furloughed. Realistically, when furlough ends, many could be jobless. Why insist on them having a six-month gap on universal credit before letting them access Kickstart for their job prospects?