Young Jobseekers

Chloe Smith Excerpts

Tuesday 27th October 2015 Westminster Hall

[Chloe Smith (Norwich North) (Con)]

I beg to move,

That this House has considered young jobseekers and the Department for Work and Pensions.

I want to lead a positive and constructive debate using recent research into the role of the Department for Work and Pensions, specifically jobcentres, in supporting young people to find long-term employment. I will draw on my own experience of working closely with the Norwich jobcentre in a regional project and also direct Members’ attention to the work of the all-party group on youth employment, which I chair. I will welcome interventions and, as we have plenty of time, speeches from other Members; I ask only that others join me in focusing constructively on young people’s employment and looking in a positive way at how the hard-working officials in the jobcentre can best support those who need help.

You will be pleased to learn, Mr Gray, that this debate has allowed for the trial of a digital debate. The idea for digital debates linked to debates in Westminster Hall came from the Speaker’s Commission on Digital Democracy, which argued:

“We believe the public want the opportunity to have their say in House of Commons debates; we also believe that this will provide a useful resource for MPs and help to enhance those debates. We therefore recommend a unique experiment: the use of regular digital public discussion forums to inform debates held in Westminster Hall.”

It gave me great pleasure last night to take 97 questions and comments from the public over Twitter to inform this debate and raise its profile. I place on record my thanks to everyone who got involved. Between us, we reached nearly a million Twitter accounts, which is an achievement in itself.

I note a few comments made in that debate. A theme that ran through many of the points made was that everyone should not be treated the same: there should be personalised treatment for young jobseekers at the jobcentre. A second theme was that if we expect commitment from jobseekers, we should also demand it from staff, who should be punctual and treat jobseekers with respect. Someone asked whether the Government have plans for jobcentre resources specifically for young people. I have mentioned that early in the debate so that the Minister can prepare his answer. The theme of mentoring also came up. I took the opportunity in last night’s debate to place on record the resources available through the Chartered Institute of Personnel and Development’s Steps Ahead programme, which in East Anglia alone has more than 90 mentors ready to help young people at no cost to them.

Having given a flavour of the digital debate, I will lay out the problem: more young people are in need of work than older people, as shown clearly by the official employment rates. The Office for National Statistics concludes:

“The unemployment rate for those aged from 16 to 24 has been consistently higher than that for older age groups.”

For the past three months on record—covering this summer, June to August—the unemployment rate for 16 to 24-year-olds was 14.8%. That is lower than it was in spring and lower than at the same time last year, which is to be welcomed, but it is far higher than the rate among over-25s, which is 3.9%. To be clear, that is the ONS rate, which is different from the claimant count.

[Heather Wheeler (South Derbyshire) (Con)]

I congratulate my hon. Friend on securing this debate. She is giving some very interesting figures. Perhaps South Derbyshire is bucking the trend, because in May 2010 our youth unemployment figure was 565, and in September it was 100, which is less than 1% of the national total. Perhaps people might like to come to South Derbyshire and see what we do to get young people employed.

[Chloe Smith]

I welcome my hon. Friend’s positive example. South Derbyshire certainly has a very assiduous MP to go with those figures. It is indeed the case that youth unemployment is coming down. We should celebrate and look at the examples of what has worked locally. That is one of the themes I want to establish in this debate.

[Mr Jim Cunningham (Coventry South) (Lab)]

I congratulate the hon. Lady on securing this debate. Will she comment on the quality of jobs young people get, and their training and salary levels?

[Chloe Smith]

I do not think that the hon. Gentleman will hold me too far to account if I leave it to the Minister to cover some of those points that are, after all, national. I suspect that the hon. Gentleman is arguing that they ought to be a matter for Government. The great majority of the private sector jobs created over the past few years have been full-time. Myths abound as to the extent of zero-hours contracts. We gave that argument a good going-over in the general election campaign—I am sure that the hon. Gentleman did as much as I did. There are myths around about the quality of jobs that young people can look forward to as they leave education and look for opportunities. It is deeply disrespectful to young people to set up a negative argument that they can look forward only to a zero- hours contract. It is deeply negative and we ought to avoid it.

[Mr Stewart Jackson (Peterborough) (Con)]

I congratulate my hon. Friend on securing this important debate and on chairing the all-party group, of which I have the pleasure of being a member. A key complaint from employers is about the work-readiness of young people. Does my hon. Friend concur that the National Citizen Service is one of the best initiatives we have, particularly in the east of England, in helping young people to grow in confidence and work-readiness?

[Chloe Smith]

Yes, I do. Indeed, I note that the NCS is holding an event in Parliament today at which its leaders are on hand to explain an important point that we ought to celebrate in this debate: young people can lead young people to face these challenges. We should look for examples of that and give praise where it has worked, and we should seek more ways for young people to be in a position to lead their peers. I want to put that proposition forward, because it came over strongly in last night’s digital debate. It is another way of looking constructively at what has worked up and down the country.

[Mr Andrew Smith (Oxford East) (Lab)]

I join others in congratulating the hon. Lady on securing the debate. Does she agree that the quality of information and advice available to young people still leaves a great deal to be desired? Indeed, schools having the prime responsibility to provide careers advice has not been an unqualified success. The statutory guidance to schools says that they should work with Jobcentre Plus to provide a smooth pathway from school into employment. In the hon. Lady’s experience of working with Jobcentre Plus, is that happening?

[Chloe Smith]

It is happening in parts of the country. One of the points I want to make today is that we see good practice in some parts of the country. I hold up the jobcentre with which I work in Norwich as an example of that. I also note forthcoming initiatives, which I am sure the Minister will cover in his response, whereby jobcentres will be asked to work more closely with young people in schools. That is to be welcomed.

[Michael Tomlinson (Mid Dorset and North Poole) (Con)]

Will my hon. Friend give way?

[Chloe Smith]

One moment. First, I refer the right hon. Member for Oxford East (Mr Smith) to the work of the all-party group, because at our next meeting, on 18 November, we will be looking at careers education. I now give way to one of the officers of said group.

[Michael Tomlinson]

I join colleagues in congratulating my hon. Friend on securing this debate. In Mid Dorset and North Poole, the figures are still too high. Of the claimant count of 314, 67 are aged 18 to 24. That is better than it has been, but it is still too high. On the point made by the right hon. Member for Oxford East, does my hon. Friend agree that we can start careers advice from an earlier age—even as young as primary school—as we heard in the all-party group’s evidence session?

[Chloe Smith]

Indeed, I do agree with that—my hon. Friend is absolutely right—and it need not be onerous. It can be as simple as asking role models to explain to young people what they do and why a young person might want to aspire to do the same. I am sure Members will now allow me to make a little more progress in setting out my argument.

It is worth putting the national figures into context and looking at our European neighbours. It is a matter for celebration that Britain has more young people in work than the nations around us in Europe. Across Europe, one in five young people are out of work. In Spain and Greece, one in two young people are lacking work. We also see the countries leading the field, Germany and Austria, with rates of 7% and 10% respectively.

One young jobseeker in last night’s digital debate made the point that young jobseekers are people, not statistics, so, in Britain, what do all the large numbers mean in terms of real people? They mean that 3.92 million 16 to 24-year-old people are in work, including some 900,000 full-time students with part-time jobs. There are, in contrast, 683,000 unemployed young people, including about 200,000 full-time students looking for part-time work. I am including the student figures not to begin a debate about the classification of the figures— I suspect that would take more than an hour—but because I want to draw out the key figure of 683,000: between 600,000 and 700,000 young people are looking for a chance in Britain today. If that is the problem, the question is, how best can we help them find that opportunity?

[Victoria Borwick (Kensington) (Con)]

I absolutely concur with my hon. Friend. On that point, do you believe that jobcentres, which do good work in my constituency and others, should be encouraged to promote apprenticeships as a way of tackling the issues and figures that you have raised?

[Victoria Borwick]

You are quite right, Mr Gray. I am sorry.

In London, we have created 220,000 apprenticeships since 2010, which have introduced people into a world of work. Perhaps in due course the Minister will comment on apprenticeships.

[Chloe Smith]

I am grateful to my hon. Friend for giving that example. Apprenticeships provide many opportunities for young people.

This was the subject of the debate last night. One young person, whom I will faithfully report, said the rate paid is too low. Perhaps that is a topic for a long debate another day. None the less, there are many opportunities out there for earning while learning, and that package can be very attractive to young people who are looking to take their first steps and find their first opportunities.

[Richard Graham (Gloucester) (Con)]

Like others, I congratulate my hon. Friend on being a leading light in helping young people to find worthwhile employment. She is right to focus on apprenticeships. The increase in the level of apprenticeships in Gloucester almost directly mirrors the drop in youth unemployment from 1,000 to 250 over the past five years. I suspect—my hon. Friend might want to comment on this—that the employment figures for Europe will show a similar correlation in the countries that encourage apprenticeships, such as Germany and us, and those that do not. Will my hon. Friend say something about the fact that, although there are minimum rates for employing apprentices, there is no maximum rate? Many of us who have our own apprentices pay significantly over the minimum rate.

[Chloe Smith]

I am grateful for that point, which stands by itself so I shall welcome it and move on to the need for a strong economy.

The single best way to get young people into opportunities is for there to be lots of opportunities to start with. The Government have overseen significant private sector job growth, and the economy continues to grow. More jobs have been created in Britain recently than in the rest of Europe put together, and that is undeniably good news for a generation of young jobseekers who can look to a brighter future.

We need to connect young people to those opportunities—here comes the meat of the debate. A local example illustrates my point. I founded and run a project called Norwich for Jobs. In 2013, I looked at our local unemployment figures for those aged 18 to 24, and I knew that 2,000 unemployed young people was too many. Drawing together a team that could do something about it, we set about halving that number. In fact, we smashed the target we set ourselves in less than two years. So far, we have helped nearly 2,000 young people into work. About 600 still claim jobseeker’s allowance, and we want to encourage employers to give them opportunities now.

We did that by encouraging local employers to create opportunities; connecting young people with those jobs, with the jobcentre at the heart of the process; and focusing the community on a common goal. We are taking on a new challenge after having met our first target, and we are now using the power of that local network to help those claiming employment and support allowance—in other words, young people who want work but have a health condition or a disability. I strongly support the Government’s clarion call to be disability confident, and I call today on Norwich employers to consider what more they can do.

We are turning that one city project into a regional movement. The Norfolk and Suffolk youth pledge, led by the New Anglia local enterprise partnership, is a further strong example of the kind of collaboration that stands the best chance of helping young jobseekers. The pledge is that every young person in Norfolk and Suffolk will get the personal support they need to get an apprenticeship, training, work experience or a job within three months of leaving education or employment. The New Anglia skills board and Jobcentre Plus have been working closely with the two county councils, and indeed with me and others—I am on the board of the project—to develop the project. We are building on the successful roll-out of the MyGo service—the first of its kind in the UK—which was launched in Ipswich in 2014 and the project I outlined in Norwich. I am proud of that project, and hope it stands as an example to other hon. Members of what they can convene in their areas. Research by the Found Generation holds up MyGo, a youth employment centre that was the starting point of the Ipswich project, as a very powerful project.

How best can we help young people? I said that we should grow the economy and make connections. We should also share good ideas, which is why I have talked about those examples. I mentioned the all-party group on youth employment, and I welcome the members who are here today, including my hon. Friends the Members for Mid Dorset and North Poole (Michael Tomlinson) and for Bolton West (Chris Green). I welcome their presence, because we aim to share good practice. Our primary objectives are to promote youth employment in all its forms and the role of young people in the economy, to ensure that young people’s voices are heard, to highlight the need for good-quality opportunities and to share best practice.

We should value good-quality research and learn from it what we can do better. I will draw on two reports. YMCA England, of which I am a parliamentary patron—I am also patron of the Norfolk organisation—produced a constructive and practical research report, which I have in front of me, entitled “Safety Net or Springboard?” Its purpose

“was to examine how the social security systems could be transformed to better enable young people to find employment and fulfil their potential.

High levels of youth unemployment are not a new problem in the UK. While the global recession saw a significant jump in the number of young people facing unemployment, in reality, the upward trend started long before the financial crisis, as far back as 2004.

Given that numerous governments have tried a range of schemes to battle this problem with only mixed success, this research sought to give young people a voice in shaping any new approach offered, including the introduction of a Youth Obligation, a back-to-work scheme announced by the Government as part of the Summer Budget 2015.

Through a series of focus groups, young people from YMCA identified six areas they believed job centres could improve to increase their prospects of finding employment:…Understanding young people’s circumstances…Listening to young people’s aspirations…Supporting young people to look for work…Getting young people the right skills and qualifications…Securing young people with meaningful work experience”

and

“Retaining support for young people transitioning into employment.”

The evidence in the report is based on a series of focus groups that took place this summer across England in areas that many hon. Members here come from: north Tyneside, Birkenhead, Grimsby, Derby, Birmingham, Bedford, Dartford, Westminster, Horsham, Exeter and my own constituency of Norwich. The YMCA found that:

“The overwhelming feelings expressed by the young people participating in the research were ones of frustration and dismay towards job centres and the support they currently provide in helping to find employment. More than nine in 10 of individuals taking part in the focus groups believed the support they were currently or previously receiving from their job centre was not helping them find employment. Through the research, YMCA sought to understand why this alienation exists between young people and job centres and to identify what measures they felt were necessary to transform the job centre and the wider social security system from a safety net to a springboard into employment.”

I want to be absolutely clear that I have the highest respect for Jobcentre Plus staff. As my local examples demonstrate, I work closely with the team in Norwich and East Anglia, which is led by the excellent district manager Julia Nix. I see their dedication, innovation and hard work day in and day out.

[Gareth Johnson (Dartford) (Con)]

I have read the report that my hon. Friend is talking about. She rightly said that it referred to some work in Dartford, but there were a number of things that surprised me about it. First, it said that Dartford is in London; it is not. It was also somewhat critical of some of its experiences there. That has never been my experience of the jobcentre in Dartford; I have always found the staff to be incredibly professional. I would argue in their defence that the proof of the pudding is in the eating, and that since 2010 youth unemployment in Dartford has fallen by some 71%.

[Chloe Smith]

I welcome my hon. Friend’s contribution. He makes the same point as I do. The best officials in the jobcentre are highly respected and are known for their work in the community. Their passion shines out and they embody the values of public service at every opportunity. They also take a hands-on approach, which is perhaps over and above the duties of a civil servant. They could well be expected to do their work from behind a desk, but the best officials do not do that. They go out and work hard in the community to get results. I welcome hearing my hon. Friend’s local example.

It is in that spirit that I mention the YMCA research today, because civil servants of the calibre of which we speak will want to do even better. The report states that

“many young people are continuing to be prescribed the same generic support, regardless of their circumstances and aspirations. This is creating a significant discordance between how young people view the service being provided and what governments believe they offer. While examples of good practice do exist, the research illustrates that these are few and far between”.

Let’s share the good ideas and let’s do better. The YMCA research proposes that the new youth obligation be matched with an obligation on jobcentres. It argues that the obligation should commit jobcentres to providing each young person accessing its services with a more detailed initial assessment with a closer focus on their personal circumstances and aspirations, a specialist youth work coach, more comprehensive sign-on sessions, more regular opportunities, better training and work experience, and options to discuss how available funding may be used to let them participate in training. The report also suggests that people should be able to participate in training for more than 16 hours a week without their benefit claims being affected.

I want to quote some of the young people in the research. Charlotte of Norwich says:

“I want the job centre to be a bit more understanding.”

Jordan of north Tyneside says:

“The job centre needs to stop treating everyone the same.”

Marcio of Bedford says:

“The job centre needs to really listen to young people to see what we want.”

Other voices in the report tell us why we must collaborate locally to bring about the chances that young people need. Another young person from Norwich says:

“Everyone is looking for experienced workers, but how are we going to be experienced workers when no one is giving out experience?”

Another from Norwich seeks more “volunteering placements”. I suspect that organisations listening to today’s debate may want to continue the digital debate and explain exactly what they can offer in terms of volunteering opportunities for young people up and down the country.

I would also recommend that Members take a look at the work of the Found Generation, as mentioned earlier. It is another extremely practical group that asks young people for their own solutions to the problem of young unemployment. In July 2014, it published “Practical Solutions to UK Youth Unemployment”, a report asking for four things. First, it asks that we expand

“the use of public sector procurement to create jobs for young people”,

which I note that the Minister for the Cabinet Office is now doing. Secondly, we are asked to back

“a national ‘kitemark’ to recognise ‘youth friendly’ employers”

and I note that at least one organisation, Youth Employment UK—the secretariat of the all-party parliamentary group that I chair—is already doing so. Indeed, hon. Members can qualify for the award, as I have. I am a recognised youth-friendly MP.

[Richard Graham]

Hear, hear.

--- Later in debate ---

[Chloe Smith]

Thank you. Thirdly, the report argues for

“the creation of more local partnerships—including representation for young people—to co-ordinate”

the work that needs to be done. I hope that my examples make that clear. Finally, the report argues for the creation of

“a cross-government youth employment unit or agency in the UK Government, headed by a Minister for Youth Employment”.

I am aware that such a scheme exists in the Scottish Government, so perhaps Scottish Members can outline a few points around that. Will the Minister give an update on what the Government’s earn-or-learn taskforce is doing? The Found Generation’s manifesto for youth employment at the 2015 general election echoed many of the themes that I drew out from the earlier research. We are looking for a more specialist, personalised, sustainable and empowered approach that puts young people at its heart.

In conclusion, I hope that I have highlighted some valuable research and that I have taken the opportunity to put young people’s experiences at the heart of the debate. It gives them a chance to be heard in Parliament. I have argued at every step of my parliamentary career that more young people should be able to take their rightful place in this House. I ask the Minister to respond by giving us an update on the Government’s taskforce, explaining his intentions for the youth obligation, and outlining what he will do to help hard-working jobcentre staff do their best to help young people into work.

[Several hon. Members rose—]