Youth Employment

Gillian Keegan Excerpts

Wednesday 6th December 2017 Westminster Hall

[Gillian Keegan (Chichester) (Con)]

I beg to move,

That this House has considered youth employment.

It is a great pleasure to serve under your chairmanship, Mrs Moon. This is the first Westminster Hall debate I have led. Providing young people with the opportunity to get a good job has been a mission of this Government, and I am pleased that this debate is set against a backdrop of such positive figures. [Interruption.]

[James Gray (North Wiltshire) (Con)]

On a point of order, Mrs Moon. Can something be done about the sound system, please?

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[Mrs Madeleine Moon (in the Chair)]

We have a system that will allow us to record the debate, but we might not be able to broadcast. If the hon. Lady is happy, we may proceed.

[Gillian Keegan]

Providing young people with the opportunity to get a good job has been a mission of this Government, and I am pleased that this debate is set against the backdrop of such positive figures. From July to September this year, we saw more than half of 16 to 24-year-olds in work and a further third in full-time education. Figures from the Office for National Statistics show that youth unemployment is at its lowest point since 2001, falling by 71,000 in the past year alone. We have experienced that in Chichester, with youth unemployment now less than one third of what it was in 2010.

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

I congratulate my hon. Friend on securing a hugely important debate. She mentions the figures. In percentage terms, the figure is 11.9%, and the lowest it has ever been is 11.6%. I invite her to the all-party parliamentary group for youth employment. We meet on the day that the ONS figures come out. Our most recent project is on those furthest from the labour market. If we can unlock that, we can improve the figures even further.

[Gillian Keegan]

I agree, and I would love to come along. The figures are really good news, as my hon. Friend said, and they are even more impressive when compared with those of some of our near neighbours in Europe, although one should not take the success for granted.

At the start of the last global recession, I was working in Spain. In that time, I saw youth unemployment reach nearly 50% at its peak, and I saw at first hand the devastating effect that can have on young people’s lives. I lived in a block of flats in Madrid, and it was difficult to watch as many of my neighbours were made redundant. Even worse was seeing young people graduate from university or college and applying for job after job with no success. It is heartbreaking to watch talented and qualified young people spend years trying to get on the first rung of the ladder. Being continuously rejected is demoralising for anyone, and I wish I could say that the situation has improved in the eight years since I left Madrid, but it has not. Many of the same people are still out of work and struggling to get by. The youth unemployment rate in Spain remains very high at 38.7%, and the situation has been ongoing for almost a decade. They genuinely have lost a generation of opportunity.

The wider EU average unemployment rate is currently at 16.7%, with Greece at 43.3% at the top of the list above Spain. In the UK we compare comparatively well, with youth unemployment at 11.9%. Although we can celebrate the success we have seen in getting more young people into work, still our goal must be to ensure that all 16 to 24-year-olds are either earning or learning. That is crucial, as we need to increase our skills for growing businesses and raise the career aspirations of the next generation. The priority must be to remove the barriers to young people getting into work. To do this we need to ensure our younger generations have a variety of routes into the workplace.

When I left school at 16 there were no decent sixth-form colleges in the area that I lived in in Knowsley. I had 10 O-levels, but where was I to go and what was I to do? I was fortunate enough to get an apprenticeship. I really was lucky because only five places were available. Many of my fellow school leavers would have benefited from the wide variety of apprenticeships on offer today.

[David Simpson (Upper Bann) (DUP)]

On the subject of apprenticeships, one of the difficulties that we face in Northern Ireland, certainly in my constituency, is that 25 young people will start an apprenticeship but five will finish it. How can we change that mindset?

[Gillian Keegan]

That is an important point. I would like to put in a plug for apprenticeships, but they need to be high quality.

[David Linden (Glasgow East) (SNP)]

I commend the hon. Lady on securing this debate. One of the things I was concerned about in the recent Budget was the announcement that the minimum wage for apprentices will go from £3.50 an hour to £3.70 an hour. I appreciate that not all apprentices are paid at that level, but does she share my concern about the pitifully low rate of pay that apprentices are paid under the UK minimum wage?

[Gillian Keegan]

As the hon. Gentleman says, not all apprentices are paid at the minimum level. I certainly was not when I did my apprenticeship, but an apprentice is earning and learning and the model still works at the minimum wage.

[Leo Docherty (Aldershot) (Con)]

To continue that point, I have experience of meeting apprentices in my constituency. They are hugely grateful for the opportunity to work with businesses. Does my hon. Friend agree that it is the role that business plays that is critical in making apprenticeships a success? It has been the engine driving the remarkable increase in apprenticeships over the past several years. The growth has been miraculous.

[Gillian Keegan]

I completely agree. I believe I am the only degree-level apprentice in the House—I have not found another one so far—so I know about this from personal experience.

[Stephen Kerr (Stirling) (Con)]

I congratulate my hon. Friend on securing this debate. Does she agree that for apprenticeships to be of a high quality there needs to be a vibrant partnership between business and higher education? In my constituency, Forth Valley College has developed a network of connections with local business and is delivering the talent and capabilities that businesses need to flourish and prosper.

[Gillian Keegan]

I completely agree that that is the best model.

I spent three years working in every part of the business that I started in, which was a car factory in Liverpool. In parallel I studied business management up to degree level. By the time I moved on to my next job in senior management at NatWest Bank, I had seven years’ work experience, a degree and no student debt. That is the ideal route into the workplace. It has many advantages, particularly for working-class kids such as I was.

I welcome the Government’s recognition of apprenticeships as they are a great way to get into work and learn about business. Since 2010, 3 million apprenticeships are now available, with a target of 3 million more by 2020. That is a significant achievement, but it is not about numbers. It is the good quality training and skills that work for both the employee and employer that are key.

As my hon. Friend the Member for Stirling (Stephen Kerr) implied, colleges, universities and business are developing successful collaborative relationships across the country. Chichester College—a college of further education —has achieved that with more than 25,000 apprentices who have passed through its doors, and its success continues, with increased participation year on year.

[Jo Churchill (Bury St Edmunds) (Con)]

I congratulate my hon. Friend on securing this debate. I know it is extremely important to her to get more young people into good quality jobs. Does she agree that partnerships need to be formed with businesses of the future? Some 50% of all those in the east are in engineering and manufacturing, and West Suffolk College, an outstanding college in my constituency, hopes to launch an institute of technology. Employers with high quality degree apprenticeships and high quality routes up to those is what is really important.

[Gillian Keegan]

I completely agree. Hearing that kind of message coming from Suffolk is music to my ears, because it is a fantastic model and will provide great opportunities for young people today.

Chichester College has put employability at the heart of its curriculum and has developed key relationships within industry, as we have discussed, over many years. Now it also offers students in-work educational programmes. Many of its courses were designed with some of the 5,000 businesses that it works with. One such example is URT Group, a manufacturing firm that works in a diverse range of industries from defence to motorsport. Its business is centred around apprenticeships in every area. In fact, two former apprentices are now in senior management roles in that business.

Business and colleges working together also ensures that skill gaps in local industry are filled. Chichester College also runs seven different construction courses, with more than 1,000 students. The Government are committed to building more homes in the UK, and the students in Chichester will build the homes of the future. Many of the college graduates go on to set up their own businesses, and they in turn take on apprentices. Others come back to run classes and workshops to share their skills.

There are also people who are not in work. They want to take the first step, and universal credit provides greater flexibility to support that journey. It is important to remember that people cannot move up the career ladder until they are on it. Once rolled out, universal credit is expected to boost employment by 250,000. Importantly, elements such as the in-work progression scheme increase expectation and aspiration to seize opportunities to earn more. We recognise that the transition from jobseeker’s allowance to universal credit has caused some concerns, so I welcome the interventions by the Department for Work and Pensions and the Chancellor to tackle those concerns with the recent announcements in the Budget.

Across the country there is still more to do to enable young people to get into work. In the north-east, youth unemployment is at 18%. By contrast, in the south-east it is 10%. We are also seeing ethnic differentials too, and I would welcome further investigation into why that is the case. Thus far the statistics show that those who do not attain grades at school are more likely to end up not in education, employment or training, as so-called NEETs. Despite 1.9 million more children attending a good or outstanding school since 2010, some young people do underachieve during their educational years, but that should not disadvantage them for life.

[Mr Gregory Campbell (East Londonderry) (DUP)]

I congratulate the hon. Lady on securing this debate. Given the welcome stats that we received about two weeks ago showing the reduction in net immigration into the UK, does she agree that if employment stats continue to improve, as we all hope they will, we will need to see a nationwide retraining of our young people to try to fill what may well be a gap, if we do not do that emphatically and comprehensively across the nation?

[Gillian Keegan]

Yes, I do agree. As we would say in business, that is a nice problem to have.

Programmes such as “Get into”, which is run by the Prince’s Trust, are fantastic for those who underachieve at school. The scheme works by getting young people on to a four-week placement across a range of industries. It provides an opportunity that for many is a vital life chance, with almost a quarter of those in the programme having been unemployed for more than two years. Many large companies—for example, Accenture, Arvato, and HP—now offer young people opportunities to get into the workplace via the “Get into” programme run by the Prince’s Trust.

One participant, Michelle, was physically and sexually abused for years, and understandably suffered from depression and started offending. After going on the programme, she said:

“Without the Trust’s support, I would have carried on being self-destructive, with no future to look forward to. Instead I’m happy, sociable and I’m actually excited about where my life is going.”

Her words highlight the importance of getting young people into work and giving them the opportunity to build self-esteem and purpose.

[John Howell (Henley) (Con)]

Would my hon. Friend recommend that prisons offer more apprenticeships? They have to provide a work focus for their prisoners, and it would be extremely useful if they offered apprenticeships as part of that.

[Gillian Keegan]

That is an excellent point. I recently visited Wormwood Scrubs, and I think that would be a fantastic programme to help people who, ultimately, have just taken the wrong path in life, but really do want to rejoin the workplace upon leaving prison.

Last Monday, I went to St Pancras church in Chichester, which runs a breakfast for some of the 80 homeless people and rough-sleepers in the city. There I met a young girl who has been through the care system and now finds herself without a roof over her head. She feels that she lacks the experience and support to get into work. Some 24% of those between the ages of 16 and 18 who have been in care are categorised as not in education, employment or training. That is why programmes such as “Choose Work”, run by Chichester District Council, are so important. They help people to access work experience, helping them on to the first rung of the ladder. I am also delighted to say that the young girl I met on my visit is now in supported housing.

One area of concern is wage stagnation. Figures for 22 to 29 year-olds suggest a decline of 5.5% in real-term wages, compared with 2008. Clearly, the effects of the financial crisis are still present. The Government’s policies on the minimum wage and raising the tax thresholds have gone some way to protect those on the lowest incomes; however, the more skills and qualifications one has, the better the wage, so we must enable young people to upskill and increase their earnings and living standards.

The Government’s role is to help people develop. As the proverb says:

“Be not afraid of growing slowly, be afraid only of standing still.”

To ensure that does not happen, the Government have launched several schemes to bring about greater youth opportunity. The adult education budget, for example, provides free training to those who are over the age of 19 and unemployed, up to and including level 2 qualifications. All that is arranged through the jobcentre. Similarly, the youth engagement fund, launched in 2014, aims to improve education outcomes and employability for disadvantaged young people. More generally, education is diversifying, with the first three T-levels now launched, supported by a further £500 million a year, once those programmes are fully rolled out. They will provide yet another path to a career for young people.

The Government do need to do more for some groups, such as those with a disability. Figures from 2016 show that the youth employment rate is only 38% in those groups. I recently met a constituent whose son Josh has autism. She managed to get him on a work experience programme in IT. Some roles, such as those in IT, are very well suited for people with disabilities such as autism. The overwhelming effect of the work experience was positive, and his mum told me that he was less anxious, and over the period began to open up more and more—a significant challenge for young people with autism. We must do more to help that group.

[Michael Tomlinson]

Will my hon. Friend commend the work of charities such as Leonard Cheshire Disability, which does some excellent work in this area, encouraging those who are disabled to get work experience, and from there to get into the world of work as well?

[Gillian Keegan]

Yes, I think that is an excellent scheme.

The next generation stands at the precipice of the fourth industrial revolution, with big advances in next-generation technology, such as artificial intelligence and biotech. The next generation is also composed of digital natives: those who have embraced completely the power of mobile computing. As a nation, we are preparing to spearhead that advance, and we need to lead in the latest industrial revolution. Businesses can rely on world-class centres of education and research, with a strong digital foundation—18% of all global data flows are already hosted in the UK. That is powerful when combined with our nation’s historic foundations of common law and internationally respected institutions, plus the Chancellor’s Budget announcements of increased investment in research and development, tech infrastructure and skills development. Put together, our potential is real.

Tech waves themselves can provide a mechanism for social mobility. I was young once, and the internet revolution during the ’90s helped me to build a great career. Sitting in my comprehensive classroom in Huyton, in Knowsley, I never thought that I would be negotiating technology deals in Japan just 10 years later—but nobody else knew how to do that either.

To fulfil the needs of industry, we need to ensure that there are opportunities for young people to get high-quality training that meets the needs of business. The fresh food industry in Chichester is worth £1 billion, and currently has a shortage of engineers to handle both the advanced robotics and the chemical elements involved in growing produce. The advanced manufacturing and engineering sector in the Coast to Capital local enterprise partnership represents 4.4% of all businesses, so it is important to upskill young people to fill those roles. Increasing the number of people taking up science, technology, engineering and maths qualifications is therefore vital for industry.

[Sir Nicholas Soames (Mid Sussex) (Con)]

My hon. Friend is making a powerful speech. Does she agree that there is an onus on industries to go into schools and other institutions to tell young people about the opportunities that await them? Sheer effort enabled her to achieve what she did in her career, but lots of people do not get the chance even to know what opportunities might be available to them. It is happening on industries’ watch, and they need to address that.

[Gillian Keegan]

I completely agree. In my case, without an inspiring maths teacher, who was also my careers teacher, I would not have even heard about the opportunity of an apprenticeship.

The University of Chichester is investing in a new technology park, where they will put a bit of STEAM into STEM, by facilitating the relationship between art, design and sciences. The university is adopting a model of “Conceive, design, implement, operate”, which is supported by the Royal Academy of Engineering. That model has already been adopted by 12 other UK universities, and aims to close the gap in higher-level engineering, creative digital technology, data science and sustainability skills. The investment that we see in our universities is welcome, and that boost in development is very much down to the effects of a guaranteed income, provided by student fees. No longer do universities suffer from underfunding by successive Governments.

Implementing new courses and facilities is key if we are to ensure that we meet the expected needs of industry. The Department for Business, Energy and Industrial Strategy estimates that 56,000 level 3 apprenticeships will be needed each year to meet the needs of the engineering sector alone. At present, we have 26,000.

Alongside investment in better education and routes into work, we must put appropriate structures in place to encourage careers in the technology and engineering sectors. Careers services, as we have just discussed, need to move into the 21st century. I therefore welcome the introduction of a new careers strategy, launched on Monday this week. The most important element of the new strategy is the “Good career guidance”. Advice will be forward-looking and in tune with the developments in the technological landscape that we all now live in. I am pleased that the strategy includes industry interacting with our schools, and I hope that that will inspire young people.

The strategy follows the work of Jobcentre Plus, which already works with children in schools from the ages of 12 to 18 to discuss career options and inform them of all the alternative routes into work. I hope that today’s debate will emphasise the importance of a diverse range of routes into work and mechanisms to support the next generation to achieve their aspirations. We will focus on creating opportunity and raising aspirations for young people. I have spoken about people who have turned their lives around by getting into work, including myself. Getting all 16 to 24 year-olds either earning or learning is the right goal for us all.

In preparing for the debate, I looked back on my school years. Almost every one of my classmates in my failing comprehensive school had talent and the potential to achieve whatever they put their mind to. Some of us beat the odds and got life chances, in spite of our schooling. My life chance was my apprenticeship. Others did not get such an opportunity. They were let down in school and not offered enough support, or alternative routes into work when they left school at just 16. If only they were now leaving school, they would have a far greater chance to achieve their potential.

The fourth industrial revolution brings with it opportunity—opportunity for future generations to grow into high-skilled and high-paid jobs. Investing in young people has to be the wisest investment a country can make, as they are the only future we have. The Government have a good record on youth employment, and I welcome their steps to improve it. By creating opportunity and life chances, like the one I got, we can have a future generation that is better educated, more skilled and more highly paid. Investing in the young is investing in the future of Great Britain and will, I believe, make us much greater still.

[Several hon. Members rose—]

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[Gillian Keegan]

Our performance in youth employment is strong, and as my hon. Friend the Member for Ayr, Carrick and Cumnock (Bill Grant) said, this is a good news story. That news is especially welcome when compared with our European neighbours. That is not an accident, but the result of the right policies, and we must not take it for granted. Improving school standards, high-quality apprenticeships, investment in tech and digital skills, and high-quality colleges and universities, all working more collaboratively with business—that model is working, but we still have more to do to ensure that all young people have a decent future, and not a future on benefits. Labour Members talk about benefits a lot, but for young people that is not the workplace. I thank all hon. Members for taking part in this debate, and I look forward to working together to increase opportunities and earnings for young people today and in the future.

Question put and agreed to.

Resolved,

That this House has considered youth employment.