Youth Unemployment

Denis MacShane Excerpts

Wednesday 9th November 2011 Commons Chamber

[Mr Byrne]

The hon. Gentleman’s constituents will want to know why he is living in the past, and what he is doing to take to his Front Benchers the argument about what more they are going to do in the autumn statement to get our young people back to work.

We have heard about the great success that is the flagship youth programme. Now let us turn to the Work programme.

[Mr Denis MacShane (Rotherham) (Lab)]

Will my right hon. Friend give way?

[Mr Byrne]

In a moment. I shall just tell the House a little about the Work programme.

We have debated before the virtues of the Work programme, and I understand that young people can now be referred to it early. I shall put aside for one moment the Work and Pensions Committee’s conclusion that it is one third smaller than previous programmes, because the Minister has strong views about that, and I shall put aside also the Social Market Foundation’s analysis that the DWP offers providers of successful outcomes a maximum amount of money that is 25% less than the flexible new deal, because those facts are not the worst of it. The worst of it is that the Department itself expects three quarters of people to flow straight through the programme and straight back on to the dole, so I ask the House, how is that going to make a difference?

[Mr MacShane]

Do we not have to nail one lie—that there is some magic deregulation out there which solves the problem? European countries such as the Nordic countries, the Netherlands and Germany—the Minister of State, Department for Work and Pensions, the hon. Member for Thornbury and Yate (Steve Webb) is aware of this—all have stronger regulation and active labour markets, so it is a huge lie to say that the poorer young workers are and the worse they are treated, the more jobs there will be.

[Mr Byrne]

I know that my right hon. Friend will agree that it is curious that while unemployment is going down in America, the eurozone and Japan, it is going up in this country.