Oral Answers to Questions

Ed Miliband Excerpts

Wednesday 18th January 2012 Commons Chamber

[The Prime Minister]

My hon. Friend is quite right. We need to sort out this problem even before looking at a national funding formula. We inherited the funding formula that he describes, and I believe it is flawed, which is why we are reforming it. The Secretary of State for Education has met academy heads in my hon. Friend’s constituency and will happily discuss with him how we can deal with this problem. The growing evidence is that academy schools are not just good for the pupils who go to them, but by raising standards in those areas, they are actually raising standards of all schools at the same time.

[Edward Miliband (Doncaster North) (Lab)]

The Prime Minister told us that unemployment would fall in each year of this Parliament. Today, unemployment rose for the sixth month in a row. Does he think that has anything to do with his Government?

[The Prime Minister]

The Government take absolute responsibility for everything that happens in our economy, and I take responsibility for that. Any increase in unemployment is disappointing, and it is obviously a tragedy for the person who becomes unemployed and can lead to real difficulty for that family. That is why we are taking so much action to try and help people to get back into work. Although the increase in unemployment is hugely unwelcome, it is noteworthy that the figures today show that there is still an increase in the number of people employed—another 18,000 are in work. That shows that we need more private sector employment. We need to move further and faster on that agenda.

It is also noteworthy that there is a small decrease in long-term unemployment. I hope that shows that schemes such as the Work programme that the Government are introducing are beginning to have an effect, but again, we need them to go further and faster. There is not one ounce of complacency in this Government. We will do everything we can to get people back to work.

[Edward Miliband]

Does the Prime Minister not understand that when he boasts about rising employment, it just shows how out of touch he is? In some parts of London, 100 people are chasing three vacancies. That is the situation people are facing. Can he confirm that under his policies, far from things getting better over the coming year, he expects things to get worse and unemployment to rise to 2.8 million?

[The Prime Minister]

Forecasts are no longer set out by the Government; they are set out by the independent Office for Budget Responsibility. Unlike in the right hon. Gentleman’s day, these forecasts are not fixed and fiddled by Ministers, but set out by independent economists. The Government’s responsibility is to do everything we can to help people into work. That is why we have the Work programme, which is helping 3 million people; why we have the youth contract, which will get subsidised, private sector jobs for 160,000 young people; and why we have work experience for 250,000 young people. Half those are off benefits within two months, which is 20 times better value than the future jobs fund.

As I have said, there is no boasting about anything. What we have here is growth in the private sector and contraction in the public sector, but we need to get our economy moving. Key to that is having the low interest rates that the right hon. Gentleman’s plans would put at risk.

[Edward Miliband]

The Prime Minister does not seem to understand. The reason why the OBR figures matter is that they show that over the next year, unemployment will get worse, not better, under his policies. Nothing that he can say can deny that. That long list of policies, according to the independent OBR, will make no difference.

Let us talk about young people. Can the Prime Minister confirm that in the past year, we now have 147,000 young people out of work for more than six months? That is double what it was a year ago—an increase of 102%. Why has he allowed it to happen?

[The Prime Minister]

Let me give the right hon. Gentleman the figures. Over the past year, unemployment among young people, measured by the independent labour organisation—the proper way of measuring the figures—is up by 7%. That is far too high. It is not the 40% increase that we had under Labour, but it is far too high. What we need to do is help those young people into work, and that is exactly what our programmes are doing.

Let me just make this point, because I think it is important. There is a fundamental difference between the way this Government measure youth unemployment and the way the last Government did. That is important, because the right hon. Gentleman’s Government counted young people who were on jobseeker’s allowance and in any form of scheme as not unemployed. This Government say that until they get a permanent job, we will measure them as unemployed. That is right. It is not complacent, it is frank, straightforward and what we never got from Labour.

[Edward Miliband]

It really is back to the 1980s—a Tory Government blaming unemployment on the figures. No wonder the Prime Minister has rehired Lord Young, the Employment Secretary in the 1980s.

On long-term youth unemployment, the Prime Minister is wrong on the facts. Long-term youth unemployment, which has a scarring effect on our young people who are out of work and have been out of work for more than six months, has doubled in the past year. However much he twists and turns about the figures, can he confirm that central fact—that it is up by 102% in the past year?

[The Prime Minister]

I have explained the figures. If we look at the number of young people who have been out of work for longer than 12 months, we see that it has started to go down. That is not nearly enough, and far more needs to be done, but that is what the Work programme is all about. That is what the right hon. Gentleman needs to understand.

There is a context to all this. If we want to get unemployment down, we have got to keep interest rates down, and we have had a reminder in recent days of what happens if you do not have a plan to get on top of your deficit, get on top of your debts and get your economy moving. That is what the right hon. Gentleman does not understand.

What we have is a Government who are absolutely clear about their plans and an Opposition who have absolutely no idea. Last year the right hon. Gentleman marched against the cuts, now he tells us that he accepts the cuts, yet today he is telling us that he wants to spend more and borrow more. He is so incompetent that he cannot even do a U-turn properly.

[Edward Miliband]

The Prime Minister is simply—[Interruption.]

[Mr Speaker]

Order. The House must try to calm down and contain itself.

[Edward Miliband]

I know that the Prime Minister does not want to talk about the young people out of work in this country, because he is embarrassed by his record on what is happening, but he owes it to them to tell the facts as they are about what is happening to them. I come back to this point: the Prime Minister said in his answer that long-term unemployment among young people is going down. It is not going down; it is going up.

The Prime Minister mentions the Work programme, which he introduced with a great fanfare in June. What has happened to long-term youth unemployment since he introduced his Work programme?

[The Prime Minister]

Let me give the right hon. Gentleman the figures. [Interruption.] I will give him the figures exactly. There are far too many young people who are long-term unemployed. There are 246,000 young people who have been unemployed for more than a year, but that is down 11,000 on the last quarter. That is not enough, and we want to do more, but it is because we have the Work programme, the youth contract, 400,000 apprenticeships and 250,000 people going into work experience that we are making a difference. Why does he not come up with something constructive instead of just knocking everybody down?

[Edward Miliband]

I will tell him what he should do: he should change course. It is his policy. Why is unemployment rising? It is rising because he is cutting too far and too fast. It is his record. However much he twists and turns, it is his record. That is why unemployment is rising. Unemployment among women is the highest since the last time there was a Tory Government; youth unemployment is the highest since the last time there was a Tory Government; and unemployment is higher than the last time there was a Tory Government. Is not the defining characteristic of this Government that they stand aside and do nothing as thousands of people find themselves unemployed?

[The Prime Minister]

To be fair to the right hon. Gentleman, he changes course every day; he is an expert at changing course. Labour’s shadow Chancellor said two days ago:

“My starting point is…we are going to have to keep all these cuts.”

Then Labour’s deputy leader said yesterday that

“we’re not accepting the Government’s…cuts, we are totally opposing them and we’re fighting them.”

The right hon. Gentleman is flip-flopping on a daily basis. It is no wonder that the founder of Labour’s business forum had this to say:

“At a time when the nation needs strong political leadership, Labour offers nothing…the pro-business, pragmatic approach to wealth and enterprise”

have all gone.

“Instead there is a vision and leadership vacuum.”

What total adequate testimony to what stands opposite!