Esther McVey
Main Page: Esther McVey (Conservative - Tatton)Department Debates - View all Esther McVey's debates with the Department for Education
(12 years, 10 months ago)
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Esther McVey (Wirral West) (Con)
I am delighted that this debate has been secured, because youth unemployment and the lack of youth opportunities are one of the main reasons why I came into politics. Given that I grew up in Liverpool in the 1970s and 1980s, it is understandable that I wanted to change that. It feels a bit like déjà vu at the moment; it reminds me of what happened in the ’70s and ’80s. Sometimes there are defining moments in a life. One such moment for me was 3 July 1981, when I was in Princes park at the top of Devonshire road as the Toxteth riots began. It was 30 years ago this week when the blue sky changed to orange and smoke billowed up into the air.
The riots might have happened in July 1981, but the situation had been festering for some time, perhaps throughout the ’70s. There was much social unrest, as well as complex economic issues and problems with city leaders. People did not feel that they were being heard or given opportunities, although there was a lot of talent in the area. That was a formative experience in my youth, and I desperately wanted to address the issue.
At the time, the Scarman report recognised that the riots represented the result of social problems such as poverty and deprivation, and the Government responded by sending Michael Heseltine to Liverpool to be Minister for Merseyside. He set up the Merseyside taskforce and launched a set of initiatives to begin the regeneration of Liverpool. That is what I am thinking about. We are talking about education and opportunities, but city regeneration is also needed, so that the kids who have learned can take up opportunities. The statistics show that youth unemployment is one of the biggest issues that the coalition Government have been left to tackle. In September 2009, Wirral West had some of the worst unemployment rates in the north-west for 16 to 24-year-olds, ranking seventh—
Graham Jones (Hyndburn) (Lab)
The hon. Lady mentions regeneration in Merseyside; a lot of people were employed in the housing market renewal programme in Merseyside. Does she regret the loss of that programme?
Esther McVey
It is slightly off the subject to talk about a specific housing renewal project, but I will say that infrastructure is key, and we have put £450 million into the Mersey gateway. We have set up enterprise zones in the area, and we are putting money into the Royal Liverpool hospital, which will develop the Merseybio campus to extend the knowledge economy. We are also considering ways to develop Wirral Waters and Liverpool Waters. There are various ways to create regeneration and improve an area.
Bill Esterson
I jest. I wanted to ask, as my hon. Friend the Member for Blackpool South (Mr Marsden) did, about the future jobs fund. It reduced youth unemployment, which was falling as Labour left power. The hon. Lady discussed the scale of the problem, but does she recognise that the future jobs fund was a success, and does she regret the fact that one of this Government’s early decisions was to scrap it?
Esther McVey
The future jobs fund had some successes, but 50% of people never ended up in a job. It focused on providing temporary and short-term jobs, which led to false expectations and a lot of upset when jobs did not come to pass. It was also one of the most expensive schemes ever. I do not think that it was a success. It might have been for a small set of people, but it was expensive. Given the timing of its introduction, some might consider it a pre-election stunt. We have to consider schemes that are sustainable. The Work programme, which we are working on now, can get more people into employment.
The statistics in our area show that unemployment for 16 to 24-year-olds across the country stands at more than 1 million. The figure for the north-west is 160,000, making it the region with the highest unemployment. Unemployment for 16 to 24-year-olds has decreased by 35,000 since the last election. It is a tiny dent, but necessary.
The hon. Member for Hyndburn (Graham Jones) asked about development in Merseyside. I mentioned some of the schemes and the things that we must develop. Merseyside, in its heyday as a maritime port, had a population of 1 million, which dropped to 400,000. We must develop our natural unique selling points. On Merseyside, one of those must be the port. That is why I am delighted that the Minister with responsibility for ports, my hon. Friend the Member for Hemel Hempstead (Mike Penning), has been negotiating with city council leader Joe Anderson. We need a stop-and-start cruise terminal there. We must also work with private enterprise—we are working with Peel Holdings, Cammell Laird and the Stobart Group—to open up the port, with a vision of Merseyside as the port of the north. If we want to achieve our goals on carbon emissions or other issues, surely developing the port is a way forward and an opportunity for the people there.
As well as increasing employment within the area, we need training schemes for the youth of the day. That is why I am delighted that we are investing in and supporting apprenticeships and increasing the number of places, although I agree with the hon. Member for Blackpool South (Mr Marsden) that the issue is not just about apprenticeships; it must be about attracting buy-in from businesses, which must understand that they will benefit. We are considering work experience schemes, voluntary work and the Work programme. All those things are key.
There are things that we can do ourselves. I am doing something this Friday in Wirral West. I visit schools every week; I have seen 5,000 schoolchildren since this time last year. One of them said to me, “Esther, it is a hugely changing landscape. Things are getting more complicated. What will happen at universities? Who will fund us? Who will sponsor us?” I am putting on a youth summit in Wirral this Friday. I will bring together a collection of universities and everybody who could sponsor the event, such as the Manufacturing Institute, which has been mentioned by the hon. Gentleman, the Institute of Physics, the police and the Army. I will also bring businesses together to see how they can fund young people, and to discuss the paths they could take to become perhaps a legal executive, solicitor or accountant. I will also bring together apprenticeship schemes from the BBC, the Chemical Industries Association, INEOS, Merseytravel and Andrew Collinge. The National Youth Theatre will also be there, as will a head of recruitment, who will speak to young kids who are at school about what employers need.
Having spent the past 10 years looking into and researching the traits and characteristics of people who succeed in business, I know that what we are talking about is not just grades, but character traits and personality types. It is key that pupils at school understand that, so recruitment people will be present to talk about that. In an ever more complicated age in which CVs might all seem the same, those character traits are key.
We are members of different parties, but we all want more people, particularly the youth, in jobs. If people think that there are no opportunities for them and that they have no future, that will have deep, long-term effects on what they will achieve and what they will want to do. I was slightly different from my friends. In 1984, when we were wondering what we were going to do and most jobs were not available, I thought, “Well, if most jobs aren’t available, I can do whatever I want to do, so why not have a go, and go into TV?” Some of my friends did not have that outlook and were somewhat disappointed for many years to come.
As I have said, the issue is about education and the opportunities that we as a Government can provide in the field of learning, and through apprenticeships and the Work programme. Equally, however, it is about regenerating areas so that they have jobs. I have said all that I wanted to say. We need to do something. The scars that have been left on Merseyside for a long time need to be healed, and one key thing would be the development of the port to provide Merseyside with maritime jobs for a long time to come.
Bill Esterson
I am grateful for that intervention, because it ties in with two other issues that I was going to raise: the abolition of the future jobs fund and the phasing out of the young apprenticeship scheme. Both programmes are being phased out because of the high cost of success. The hon. Gentleman is making the same point about the RDA.
Esther McVey
It is about not only cost but sustainability. We should not have short six-month schemes, because such programmes must lead to sustainability. It is about cost and sustainability.
Bill Esterson
Those are closely linked issues. Whether we are talking about the RDA, the young apprenticeship scheme or the future jobs fund, the issue is about finding better ways of running such schemes, rather than just abolishing them and leaving a void that could go on for many years.
In the north-west, there was the particular problem because the recession peaked in 1981, but youth unemployment only peaked four years later in 1985. Unless we deal with these issues now, there will be a repeat of that pattern. There was success. I consider a 50% conversion in relation to the future jobs fund to be a success not a failure. We need to learn the lessons of the past if we are to get it right in the future.
I want briefly to say something about the EMA before I finish. The EMA was crucial to apprenticeships and to colleges. It was a core part of family income. Evidence from Hugh Baird college in Sefton and elsewhere in the north-west shows not only that it was a core part of family income, but that it increased achievement and attainment. It is hard for college principals to identify who absolutely needs it and who will continue to attend without it. Those issues were not considered in the haste to make changes. The sorts of changes that have been made to the EMA, the future jobs fund and the young apprenticeship scheme are, as with so many other areas, too far, too fast. That is my major concern.
I hope that such an approach will not lead to young people of the current generation paying a very steep price, as people of my generation did in the ’80s. Even now, some of those people have never found well-paid jobs or established careers. Their families have paid the price over many years. I hope that the Minister will address those points in his summing up. We are 14 months into this Government. If we do not get it right very quickly, the time will have passed and it will be too late for this generation as well.