Youth Employment

Damian Hinds Excerpts

Wednesday 6th December 2017 Westminster Hall

[The Minister for Employment (Damian Hinds)]

What a great pleasure it is to see you once again in the Chair in Westminster Hall, Mrs Moon. I congratulate my constituency neighbour, my hon. Friend the Member for Chichester (Gillian Keegan), on bringing this important debate to Westminster Hall. I know how important youth employment is to her, and it is important for us to have opportunities to debate it. We are all grateful to her. That is reflected in the attendance—we have had eight full speeches and this is the ninth. Seventeen Members have taken part in the debate, reflecting its importance. I also welcome the opportunity to set out the targeted support and reforms to vocational education we are implementing to give every young person the best start—an ambition we will achieve only with the help of employers large and small. We need businesses to be prepared to take a chance and offer more young people, whatever their background, valuable work experience and vocational training.

We have already made significant progress on youth unemployment. As my hon. Friend the Member for Ayr, Carrick and Cumnock (Bill Grant) reminded us, youth unemployment is down by 422,000 since 2010. Youth unemployment is now at a record low: just 4.8% of under-25s are both unemployed and not in full-time education, and the UK now has the second-highest youth employment rate in the G7.

My hon. Friend the Member for Chichester reminded us of the reality of youth unemployment in some other countries, using her experience from Spain as an example. Around one in 10 16 to 24-year-olds are not in employment, education or training. While some of those have actively made a decision to take some time out before starting a career, others struggle to overcome complex barriers and multiple setbacks or have had their expectations and ambitions damaged, in turn damaging their confidence. The Government are committed to encouraging young people to be in education, training or employment and giving them the chance to progress and achieve. That is critical if we are to improve productivity, promote intergenerational fairness and tackle poverty and disadvantage.

The right support in school is critical, and if young people are to make the best choices at school, good advice is essential. It is important to widen children’s expectations, and broaden their understanding of the range of jobs and career opportunities available. My hon. Friend the Member for Ochil and South Perthshire (Luke Graham) spoke about the importance of social capital, and if there is an absence of that, the role of the school becomes even more important when trying to fill that gap. My right hon. Friend the Member for Mid Sussex (Sir Nicholas Soames) spoke about the importance of getting companies and industry into schools to present their opportunities directly, and I could not agree with him more. Some industry programmes, such as Feeding Britain’s Future, seek to widen people’s understanding of the range of careers in those industries, and STEM ambassadors talk about where people can get to if they knuckle down and do their maths and physics, including things like engineering, an apprenticeship or a degree.

To help young people make decisions about their future, we have introduced Jobcentre Plus support for schools. Working in partnership with the Careers & Enterprise Company and professional careers advisers, Jobcentre Plus advisers in schools help young people in a variety of ways. They set up work experience opportunities, offer advice on the local labour market, CV writing and interview techniques, and promote vocational routes into employment. We are also reforming the post-16 skills system and introducing T-levels. Employers want young people to have better vocational skills, and we want everyone to recognise that a technical education is as valuable as the traditional academic route for a successful career. We must keep pace if we are to drive the benefits to the UK economy: an estimated 1.2 million new technical and digitally skilled people are needed by 2022 if we are to compete globally. The Government are embarking on a major reform of the post-16 skills system in England, focusing particularly on technical education and lifelong learning.

My hon. Friend the Member for Chichester spoke of the high reputation of Chichester College, of which I am aware. She also spoke about her own experience, and what a great illustration her story is of where an apprenticeship can take someone. We have invested more in apprenticeships than any previous Government, and by 2020 we will have increased annual apprenticeship funding in England to £2.45 billion—double what it was in 2010. There have been 3.5 million apprenticeship starts of all ages since May 2010, and 1.1 million apprenticeship starts in England since May 2015.

My hon. Friend the Member for Henley (John Howell) spoke about the importance of quality apprenticeships. He is absolutely right, and the Institute for Apprenticeships is important in that regard. We are also improving access to apprenticeships for those who are disadvantaged or who have a learning difficulty, health condition or disability.

[Stephen Kerr]

FES in Stirling has set up its own training academy and is working in partnership with Forth Valley College. What more can the Government do to encourage more businesses to take that progressive attitude to investing in their talent?

[Damian Hinds]

That is something we are constantly engaged with, and Members of Parliament can play an important role. More and more companies are doing such things. With employment at its current level, and unemployment at its lowest level since 1975—some people in this room were not born the last time unemployment was lower than it is now—it is a competitive market for talent, and more and more companies are seeing that part of having the competitive edge is exactly about investing further and doing bold things with recruitment and development.

As my hon. Friend the Member for Ochil and South Perthshire reminded us, too many young people leave school without a place in further education or training, or an apprenticeship or job go to. To tackle that head on, in April we introduced a new programme of intensive support for unemployed 18 to 21-year-olds who were making a claim to universal credit full service. The programme starts with a 71-hour curriculum of workshops and exercises that encourages them to think more broadly about their skills and job goals. It helps them to identify any training they need, and supports them to improve their job search, job application and interview skills.

Young people also receive intensive work-focused coaching, and referral to additional support drawn from a wide variety of locally available provision. That provision is tailored to address specific needs and can include mental health support, employability skills, basic skills training in maths, English and IT, work-related skills training, mentoring, and a short work experience opportunity. We anticipate that many young people who receive that valuable intensive support will move quickly into further education, vocational training, an apprenticeship, or a job. Those who are still unemployed after five months on that programme will have an extended stock-take assessment to review their learning and progress, and identify additional barriers to work that need to be addressed quickly. At six months, if the individuals remain unemployed, they will be offered a sector-based work academy placement, which is a short period of vocational training, and work experience in a sector with a high number of vacancies, or encouraged to take up a traineeship. Every 18 to 21-year-old on the programme who does not take up work-related training will be offered a three-month work experience placement to help them achieve their job goals.

Universal credit also offers, for the first time, in-work support for young people on a low income to help them progress in work. Young people are better off in work under universal credit. Most young people were not entitled to claim working tax credit until they were 25, but under universal credit they continue to receive benefits while in work and on a low income.

The rate of the national minimum wage for young people is a balance. It is, of course, important to ensure that people are properly remunerated, but we must also protect their employment prospects. The rate for people aged 18 to 24 has risen by between 7% and 8% since 2015, and from April 2018 the apprenticeship rate will be at a record high in real terms. Overall, the national living wage—such a key reform—has meant that the lowest-earning 5% of the population have recently had the biggest rise in their annual incomes since records began.

The hon. Member for Wirral West (Margaret Greenwood) asked about our use of texts and other forms of communication. Yes, we absolutely use those things in jobcentres these days. It is an important part of our communication.

As our industrial strategy set out, we need to boost productivity and earning power across the country, improve the quality of work and ensure that everyone has the right skills to progress. As I hope my hon. Friend the Member for Chichester will agree, when businesses give a young person a chance of employment or the valuable opportunity of work experience, it is not only the job-specific skills that they gain that make a difference. Through work experience, young people broaden their horizons, learn how to work with others and gain confidence. That in itself can be instrumental in changing their job opportunities and life chances.

Employers say that one key reason why they do not employ young people is a lack of work experience, so getting that experience is important. If any Member has difficulty with putting local employers in touch with jobcentres and creating those work experience placements, they should get in touch with me and I will help to facilitate that. This is such an important subject, and I thank my hon. Friend for securing this debate. This is a partnership approach between the Government, MPs and educational employers.