Youth Unemployment

Heidi Alexander Excerpts

Wednesday 9th November 2011 Commons Chamber

[Chris Grayling]

I do not accept that. I shall briefly set out some of the measures we are taking on the broader economic front that will make a difference to unemployment.

The regional growth fund is now delivering investment to parts of the economy where the private sector is too small, and where we want to see private sector growth, and the research and development and investment in infrastructure that creates jobs. The introduction of enterprise zones in parts of the country where the private sector is weak will encourage businesses to grow and develop. The cut in corporation tax will deliver the lowest headline rate in the developed world. Those are examples of measures that will help to make Britain a better place to do business.

[Heidi Alexander (Lewisham East) (Lab)]

The Minister talks about the regional growth fund and enterprise zones, but those words will mean little to young people in my constituency who have seen long-term youth unemployment rise by 192% over the past nine months. Can he tell me in plain English what he will do for those young people in Lewisham?

[Chris Grayling]

I can indeed, and I shall carefully go through the different measures we have taken to tackle the youth unemployment problem. It is also important to note that we are targeting investment and support on parts of the economy where we want private sector growth so that jobs can develop.

It is worth remembering that the previous Government fiddled the figures on youth unemployment; they claimed to have abolished it. When people moved on to the new deal, they had a period of work experience and were transferred to a training allowance, at which point they no longer showed up in the figures. By that mechanism people who remained out of work for long periods temporarily disappeared from the figures, so long-term youth unemployment was, according to the previous Government, “abolished.” That was absolute nonsense.