Scotland Act 1998 (Transfer of Functions to the Scottish Ministers etc.) Order 2020

Baroness Hayter of Kentish Town Excerpts

Tuesday 11th February 2020 Grand Committee

[Baroness Hayter of Kentish Town (Lab)]

My Lords, I also thank the Minister for outlining this modest, minor order. We are happy to support it, given that its whole purpose is to enable Scottish Ministers to help young people who have been out of work for six months or more by giving them a £250 grant to help them take up a job. That is pretty important because, as the Minister said, the unemployment rate for those aged under 25 is higher than for older people. Having supported the order’s aims, I have a few brief questions for the Minister.

First, could he outline what consultation, if any, took place, particularly with the young Scottish people who will be affected by this? Secondly, and I guess this will have a technical answer, why is it necessary to have a whole statutory instrument for what seems a very minor issue? Why was it not included in the Scotland Act 2016? It seems even more minor than I thought when I first read it. If the expenditure is still a joint responsibility, it is giving only a little bit to Scotland and it seems extraordinary that it needs all this. I am delighted to be here with colleagues this afternoon to deal with it, but it is hard to understand why it needs a whole SI.

Thirdly, given that the Minister said the figure would be £2 million for the total pot, does he happen to know how the Scottish Government propose to raise the money to fund this? Fourthly, to his knowledge—I understand this is not his responsibility—are the Scottish Government planning any evaluation to ascertain the scheme’s effectiveness? Before the noble Lord, Lord Bruce, got in first, I was going to ask about accountability for this expenditure. Lastly, should a young Scottish person be awarded this £250 grant, is there any risk that they would lose access to any UK-wide funding?

As I said, we welcome any initiative that helps young people into work, but do the Government have any explanation for how an SNP Government are overseeing such a horrendously high level of youth unemployment? According to the Scotsman, the figure is even higher for this age cohort than the Minister said: 9.8%, which is three times higher than that in England and a rise of 0.8% in the year to July 2019. Does the Minister have any thoughts about that? Do the Scottish Government have any other plans in hand that are more meaningful than a £250 grant to ensure that these youngsters have a more successful entry into adulthood? If I may again borrow the words of the noble Lord, Lord Bruce, should the Scottish Government perhaps be a little more ambitious in seeking to reduce young people’s unemployment in Scotland? Nevertheless, we agree to the order.

[Viscount Younger of Leckie]

My Lords, I thank the Committee, the noble Lord, Lord Bruce of Bennachie, and the noble Baroness, Lady Hayter, for their points and questions. I will do my best to answer them. The first question to address is about accountability for this money. A young person receives the £250 cash in hand; the point is to allow the young person to spend the money in the way they feel is right. It is designed to go on travel or food costs to help them in their early days in work. However, they could easily decide to spend it on a PlayStation or something. That is the truth. The only answer I can give is that there is trust that once young people have the job they will decide to spend the money wisely.

[Baroness Hayter of Kentish Town]

That may answer the question asked by the noble Lord, Lord Bruce. I meant what accountability do the Scottish Government have in setting up this scheme that they are choosing the right people and that the pot is being handled efficiently. I recognise that this is not an issue for this government department, but the Minister might know from discussions. He might want to write, if it is not within his knowledge.

[Viscount Younger of Leckie]

The noble Baroness makes a good point. I will need to write. On how wisely the £2 million is being spent by the Scottish Government, the assumption is that the £250 grants will go to the right people at the right time for the right reasons. I will write if we can get some more information on that point.