Youth Unemployment

Liam Byrne Excerpts

Wednesday 9th November 2011 Commons Chamber

[Mr Liam Byrne (Birmingham, Hodge Hill) (Lab)]

I beg to move,

That this House believes that the Government’s policies of cutting spending and raising taxes too far and too fast have resulted in the UK economy flat-lining for 12 months, well before the recent Eurozone crisis; notes that unemployment has reached a 17-year high and youth unemployment has hit a record level of 991,000; further notes that slower growth and higher unemployment makes it harder to get the deficit down and that the Office for Budget Responsibility forecasts £46 billion more borrowing than the Government planned; further believes that with long-term youth unemployment up by 64 per cent. since January 2011 it was a mistake to abolish the Future Jobs Fund and urgent action is now required to stop a generation of young people being lost to worklessness; agrees with the IMF’s warning that ‘consolidating too quickly will hurt the recovery and worsen job prospects’ and that the Government should have ‘a heightened readiness to respond, particularly if it looks like the economy is headed for a prolonged period of weak growth and high unemployment’; and calls on the Government to adopt the Opposition’s five point plan for jobs which includes using funds raised from a tax on bank bonuses to guarantee a job for 100,000 young people and build 25,000 affordable homes, bringing forward long-term investment projects, temporarily reversing January’s VAT rise, a one-year cut in VAT to five per cent. on home improvements and a one-year national insurance tax break for every small firm which takes on extra workers.

I am glad to have the opportunity to open this Opposition day debate on youth unemployment, but sad not to see the Secretary of State in his place on the Treasury Bench. This is the second such debate we have had on youth unemployment, and it is the second such debate in which the Secretary of State has not been in the Chamber to present the Government’s argument. I am glad we have the opportunity to debate the motion today because next week we will see figures that could show youth unemployment has risen above 1 million, but I hope that it will come down. Today we have a chance to force the Government to come to the House to explain their complete failure to address the crisis now unfolding in almost every community in this country: the crisis of youth unemployment and the re-emergence of scars that we thought had gone from communities, never to return.

When we debated this issue in February, we heard some pretty complacent arguments from Treasury Front Benchers. Indeed, we had the spectacle of a Minister trying to blame the rise in youth unemployment unfolding on his watch on what happened five years ago. I hope we do not have that spectacle again this afternoon, because it is about time that the Government had the guts to take responsibility for their decisions.

In the past few weeks, the chorus of voices raising the alarm about youth unemployment has grown loud and wide. Yesterday, the Trades Union Congress confirmed that youth unemployment has now risen in 97% of communities. Last Friday, the Work Foundation urged Ministers to take urgent action to help the lost generation or risk a crisis in Britain’s communities. Last week, the CBI said:

“youth unemployment presents a specific and urgent challenge.”

Last month, the chief executive of the Prince’s Trust said that the number of unemployed young people is now twice the size of the population of Manchester and:

“If we fail to tackle youth unemployment now, we risk losing this talent forever which would be a tragedy.”

My constituency has the highest level of youth unemployment in the country, and throughout the summer residents have been telling me that we have got to do more to help our young people—people like Deborah Gillespie from Shard End who said:

“I’ve been looking since June for a job for my 16 year old. No jobs for him! He is a hard-worker. No-one will give him a chance.”

One of her neighbours has said:

“As I am an older person, I must say I do feel sorry for out-of-work youth. My own 24-year-old is out on the dole. They lose what little self-respect they once had.”

When I asked what young people needed, my constituents’ answer was pretty straightforward: work and to help them feel worthy. I know that what my constituents have been saying to me will have been echoed in constituencies around the country.

[Robert Halfon (Harlow) (Con)]

May I ask the right hon. Gentleman why youth unemployment increased by hundreds of thousands when the previous Government were in office?

[Mr Byrne]

The hon. Gentleman will know that I am familiar with his constituency because it is where I grew up. What his constituents want to know is what this Government are doing about the rise in long-term youth unemployment in his constituency. I hope that he will use the opportunity of this debate to press his Front Benchers to do more for some of the young people like the people I grew up with in his constituency.

[Andrew Percy (Brigg and Goole) (Con)]

I thank the Minister for giving way—[Interruption.] He is now a shadow Minister and will probably never be a Minister again—[Hon. Members: “ Oooh!”] Well, I talk to my electorate and that is what they are telling me. Although the right hon. Gentleman is right that we must do more about youth unemployment, the fact is that it was under his Government, from 2000 onwards, that the trend started to rise, and it was under his Government that the gap between the top 10 and bottom 10 performing schools, one of which I was teaching at for a number of years, increased. This is not something that can be laid at the door of any particular Government; it has been happening for a considerable time.

[Mr Byrne]

What the hon. Gentleman’s constituents want to know is what the Government are going to do about the crisis of youth unemployment unfolding in constituencies—[Interruption.]

[Madam Deputy Speaker (Dawn Primarolo)]

Order. For goodness’ sake, I am losing my voice. Mr Browne, you will not stand at the Bar and shout across the Chamber. Thank you.

[Mr Byrne]

What the hon. Gentleman’s constituents want to know is what this Government are doing for unemployed people in his constituency now. He might like to live in the past; his constituents want to know what he is doing for them today.

[Henry Smith (Crawley) (Con)]

One of the things this Government can do, and are doing, is to provide more apprenticeship places. Does the right hon. Gentleman welcome, as I do, the 70% rise in apprenticeship places in Crawley that has just been announced?

--- Later in debate ---

[Mr Byrne]

That is such an important point that we will dwell on it at length shortly.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

Will my right hon. Friend please ignore Government Members? They are in denial about what is happening to young people in this country. Young people are always the ones to suffer most in a recession. Does he agree that outside some parts of London and the south-east, we are in recession? We are in recession in Huddersfield and in his constituency, and we have to do something about it, but the Government are doing nothing.

[Mr Byrne]

My hon. Friend is absolutely right.

Under the Labour Administration, youth unemployment was 300,000 lower on average than under this Government today, even while the economy is supposed to be in recovery.

[Angie Bray (Ealing Central and Acton) (Con)]

I recall writing a letter to my local newspaper in November 2009 berating the then Labour Government, whom the right hon. Gentleman served, for a 59% rise in the latest unemployment figures. Although he does not want to talk about history, does he accept that context is very important and that his own Government had a lot to answer for in relation to youth unemployment?

[Mr Byrne]

Let me remind the hon. Lady that under the previous Government, even at a time of recession, youth unemployment and long-term youth unemployment were coming down. That is because in the face of a crisis we chose to act. The question that she has to answer—

[Mr Marcus Jones (Nuneaton) (Con)]

Will the right hon. Gentleman give way?

[Mr Byrne]

I might finish responding to the hon. Lady first.

The question that the hon. Lady has to answer for her constituents is why under Labour, even in recession, youth unemployment was coming down by 38%, and now, over the course of this year, long-term unemployment is up by 68%—on her Government’s watch. What is she going to say to those on the Treasury Bench about what further action they must take?

[Mr Jones]

The right hon. Gentleman tells us how well the previous, Labour Government did on youth unemployment, but that is not how the figures look to me. From 2004, youth unemployment was rising, and when the Labour Government left office it was higher than when they took office in 1997. How does he work that one out?

[Mr Byrne]

The hon. Gentleman is an astute observer of current affairs, and he will have noticed that the worst international financial recession was under way—

[Mr Jones]

rose—

[Mr Byrne]

Let me just answer the hon. Gentleman’s question. He will know that the worst global recession since the 1920s was under way, yet despite that, before the election, youth unemployment was coming down. He must answer this question: how is it that this Government are doing so well, when since the beginning of this year long-term youth unemployment has risen by 68%? Hundreds of constituencies around the country have seen long-term youth unemployment double. If he has the right plan, can he explain exactly what is going so well?

[Mr Graham Stuart (Beverley and Holderness) (Con)]

As we know, the scar of unemployment on young people lasts through their lifetime; it has a tremendously negative impact. I do not think the right hon. Gentleman is getting the tone of this debate correct. In truth, in the years of economic boom on his watch, youth unemployment stayed resolutely high before peaking and rising following the crisis. We need to look at what we can do better to understand the youth employment market. He must at least acknowledge the steps that this Government are taking on training and apprenticeships. It may not be enough, but let us not use this as a party political football; let us try to be constructive.

[Mr Byrne]

I am grateful, at last, for a consensual note. [Laughter.] The hon. Gentleman’s hon. Friends might laugh, but the fact that long-term youth unemployment in his constituency is up by 48% this year is not a laughing matter. This debate is an opportunity for us to interrogate this Government on what they are doing to get youth unemployment down and how, ahead of the autumn statement, they should negotiate with the Chancellor for more resources to get our young people back to work.

[John Healey (Wentworth and Dearne) (Lab)]

Is my right hon. Friend aware that almost one in seven young people in Rotherham are looking for work and out of a job? It is one of the 10 worst-hit areas since this Government came to office. The question that people are asking is how much worse this waste of talent has to get before the Government are shaken out of their complacency, accept that what they are doing is not working and change course.

[Mr Byrne]

My right hon. Friend has experience of this matter at the sharp end. Long-term youth unemployment in his constituency is up by 78% this year. I know what a difference programmes such as the future jobs fund made in his constituency. That is why it is such a tragedy that before the evaluation was in, this Government chose to cancel the project. That is why this debate is so important.

The Opposition do not believe in half measures when it comes to getting young people into work. At the end of the recession, youth unemployment was down by 38%. A year and a half into the recovery, youth unemployment is up. This year, long-term youth unemployment is up by 64%. When we were confronted by the great increase in youth unemployment, we did not stand idle but did something about it. The future jobs fund worked because it helped to create 100,000 opportunities for young people all over the country. When we met to debate this matter in February, the jury was still out on the results. We now have the Department’s own evaluation and the judgment is categorical:

“for many participants their reported experiences had been to such a high standard, that they could not think of any improvements to the scheme.”

The Government cancelled it anyway.

[Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

In my constituency, unemployment among 20 to 24 year olds is now at nearly a quarter. Members across the House should be alert to the cohort challenge, because a whole cohort of graduates is being hit hard. The unemployment rate for new graduates in the third quarter of 2010, according to the Office for National Statistics, was 20%. One in five recent graduates who are economically active and looking for work is unable to find it. That is almost double the rate from the start of the recession, which was 10.6%.

[Mr Byrne]

My hon. Friend makes an extremely important point, which echoes that made by the hon. Member for Beverley and Holderness (Mr Stuart). We know that if people are out of work when they are young, they are more likely to be low paid in the course of their career, more likely to suffer ill health and more likely to be unemployed again. That is why the Prince’s Trust and others are right to focus their attention on the crisis of youth unemployment that is unfolding in our country.

[Jim Shannon (Strangford) (DUP)]

Not only is there the spectre of unemployment and the prospect of no jobs, but many of the young people who are not in education, employment or training are under medical supervision. Is the right hon. Gentleman aware that almost 30% of the young people who are unemployed are facing depression and are suicidal? Does he feel that we have to address that issue along with unemployment?

[Mr Byrne]

The hon. Gentleman makes an extremely valuable point, which I hope he will develop in the course of the debate.

When this Government were first in office, at a time when the economy was fragile, when the recovery was in its first stages, when they were launching the biggest programme of Government cuts for many years, and when there was a risk of rising unemployment, as was made obvious by the Office for Budget Responsibility, they chose, at huge expense, to take out the key back-to-work programmes that we had in place, which were keeping unemployment down. That will stand as one of the worst judgments made by this Administration.

I know that the Government will in a moment protest that they are taking action. The Secretary of State, who is not here today, reeled off a list of programmes at Question Time last month, when he said that there are

“work clubs, work experience, apprenticeship offers, sector-based work academies, the innovation fund, European social fund support,”—

it is nice to see the Secretary of State supporting Europe on something—

“the skills offer, the access to apprenticeships programme, Work Together, the Work programme, Work Choice, mandatory work activity and Jobcentre Plus.”—[Official Report, 24 October 2011; Vol. 534, c. 4.]

It is not clear how Jobcentre Plus is an innovation of this Government, but none the less it earned a place in his list.

The only problem is that none of these programmes is making a blind bit of difference, so let us take some of the key measures one by one. I want to start with the flagship package of measures launched last May. So important was it, so pregnant with opportunity, so sure was it to make a difference, that the Deputy Prime Minister himself was allowed to put out the press release. Those measures came replete with a total budget of £60 million over three years—a grand total of £20 for every unemployed young person. Or we could look at it as 5p a day to help—

[The Minister of State, Department for Work and Pensions (Chris Grayling)]

rose—

[Mr Byrne]

I shall give way in a moment, because I would like some questions answered.

That is 5p a day to help workless young people. In total, the scheme costs less than the Department spends on stationery—what an insult! Will the Minister tell us how many people the Government have got back into work? Just give us the number.

[Chris Grayling]

Will the right hon. Gentleman clarify that the measures announced in May were for 16 to 18-year-olds? He is misrepresenting the statistics. Will he also acknowledge to the House that his Government provided no support to 16 to 18-year-olds?

[Mr Byrne]

This is the Minister whom the chairman of the UK Statistics Authority once wrote to about his casual use of statistics, so I shall take no lessons from him about statistics traded across the Dispatch Box.

[Lorely Burt (Solihull) (LD)]

Will the right hon. Gentleman advise me on the future jobs fund, which he heralds as a great creator of opportunities? Owing to EU rules on wage subsidy claims, posts offered had to be newly created; they could not be normal vacancies. How many young people got real, permanent jobs out of the future jobs fund?

[Mr Byrne]

The hon. Lady need only look at the statistics, including those for her area. This year, long-term youth unemployment has risen by one third in Solihull. The future jobs fund was helping to bring youth unemployment down. To return to the point made by the hon. Member for Beverley and Holderness (Mr Stuart), we have to help young people stay close to the labour market because if we let them drift into long-term unemployment, they have a bigger chance of being unemployed in the future, of being low paid and of drifting into ill health. That is why the right decision for her constituents, as well as mine, is not to do nothing, but to act.

[Richard Fuller (Bedford) (Con)]

The right hon. Gentleman did not answer the question from my colleague, the hon. Member for Solihull (Lorely Burt). We are fooling ourselves, if we think that this problem is simply to do with this Government or the previous one. This is a long-term, growing problem of youth unemployment. [Interruption.] The hon. Member for Dudley North (Ian Austin) is looking for the statistics for my constituency. I can tell him: it is up 24%. As we look for solutions and as economies across Europe are being destroyed because of their excessive debt, my question is: what can we do that does not incur additional debt for the Government? Will he support our schools reforms? Will he support our efforts on apprenticeships? Will he support the reductions in taxation and regulation on small businesses indicated by the Government?

--- Later in debate ---

[Mr Byrne]

Long-term youth unemployment in the hon. Gentleman’s constituency is up this year by 133%. That is a serious increase. I am happy to share with him the figures produced for us yesterday by the House of Commons Library. Those statistics speak to one key point: we need action to get youth unemployment down, and we need it now.

[Paul Maynard (Blackpool North and Cleveleys) (Con)]

In my constituency, the figure is 36% year on year. I was delighted to read in The Times today the figures to which the right hon. Gentleman just referred on long-term youth unemployment. I made the point of getting the figures from the House of Commons Library, so that I could see what the figure was in my seat. Is he aware that in 235 constituencies, youth unemployment, by the measure that he requested, has fallen since May 2010, and that in a further 41 constituencies, it has remained static?

[Mr Byrne]

I can tell the hon. Gentleman the figures in his constituency. Long-term youth unemployment in his constituency has risen by 233%, and that is an extraordinary increase, but surely he will agree with the judgment of the TUC, the CBI and the Prince’s Trust that now is the time for urgent action to get young people back to work, including young people in his constituency.

[Paul Maynard]

As the right hon. Gentleman has again mentioned my constituency, I note that according to the Library the unemployment figures rose from 75 in May 2010 to 100 in September 2011. I represent a coastal community. Has he ever heard of seasonal unemployment?

[Mr Byrne]

The figures are seasonally adjusted, as the hon. Gentleman will know, but surely he is not saying to the House and to his constituents that he is seriously relaxed about the rise in long-term youth unemployment in his constituency. I simply do not believe that that is his position.

[Several hon. Members]

rose—

[Mr Byrne]

I will give way to hon. Members in a moment, but first I give way to my hon. Friend the Member for Walsall North (Mr Winnick).

[Mr David Winnick (Walsall North) (Lab)]

The reality on the ground in my constituency is, I am sure, the same as that in many other parts of the west midlands and the black country. In my constituency, a store opened recently with 20 vacancies, and I wonder how many Government Members are able to tell us how many people applied for those 20 vacancies. I shall tell the House how many: 500. That is the reality: people desperate for work—and denied it by this Government.

[Mr Byrne]

My hon. Friend speaks with some passion, because he is right. We cannot tolerate any longer a situation in which long-term youth unemployment continues to rise at today’s pace.

[Nick de Bois (Enfield North) (Con)]

Will the right hon. Gentleman give way?

--- Later in debate ---

[Mr Byrne]

I shall, because the rise in long-term youth unemployment in the hon. Gentleman’s constituency is three times the size of the rise in mine.

[Nick de Bois]

If the right hon. Gentleman is as interested as I am in developing sustainable long-term jobs to deal with youth unemployment in particular, does he agree with and welcome rolling back the heavy hand of employment rules and legislation, including vexatious employment tribunals, and will he commit his Front Benchers to do that and even go further, so that it is easier to employ people?

[Mr Byrne]

Before I became a Member, I started a business. I know what it is like to start a business with two people around a kitchen table, to grow it, build it, take on new staff and do well, but dealing with regulation was the easy bit; selling and making a profit was the tough bit, and that is why we need urgent action to get growth back into the economy.

[Several hon. Members]

rose—

[Mr Byrne]

I shall give way to the hon. Member for Brigg and Goole (Andrew Percy) for the last time, and then I shall turn my attention to the Government’s flagship Work programme.

[Andrew Percy]

I thank the shadow Minister for giving way. He is being very generous and deserves credit for that, but is he honestly saying that, on this important issue, to which he is doing a great disservice, the upward trend in youth unemployment under his Government, the increased gap between the best and worst performing schools and the increased number of young people growing up in families where nobody has ever worked are totally and utterly unrelated to youth unemployment today? If he is, he is being completely and utterly incredible.

[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.

[Nick de Bois]

Will the right hon. Gentleman give way on that point?

[Mr Byrne]

I will give way in a moment, because I want to turn to apprenticeships, which the Minister has mentioned. Apprenticeships have sometimes been seen in this debate as the Department’s silver bullet, so let us be clear: ours was the party that rescued apprenticeships. We inherited 65,000 apprenticeships; the figure was over 260,000 when we left office. This year, 85% of new apprentices will not be young people, but people over 25. Leaked documents seen by The Guardian show that Ministers have been warned that apprenticeships are actually a re-badging of existing jobs. It turns out that about 11,000 of this year’s new places have gone to 16 to 18-year-olds. I should point out for the House that 205,000 of those aged 16 to 17 are now on the dole. If they all applied for one of those apprenticeships, they would have a 5% success rate. Getting into Oxford university is less competitive than that. Given those figures, an ally of the Chancellor of the Exchequer has said that the Chancellor thought that apprenticeships were

“a rare piece of good news, but it’s turning out to be a con”.

The unnamed ally is right: it is a con. We have a Work programme that is all programme and no work, a youth jobs scheme that costs less than the stationery budget and an apprenticeship scheme that is harder to get into than Oxford university. No wonder overall long-term youth unemployment is going through the roof. Let us hear an answer from the Minister.

[The Minister for Further Education, Skills and Lifelong Learning (Mr John Hayes)]

I am very happy to tell the right hon. Gentleman all about it, but I wonder whether he will acknowledge that today there are more apprentices under 25 than the total number of apprentices when his Government left office and that the two-year growth in apprenticeships for 16 to 24-year-olds over the last two years is bigger than at any time when his party was in office.

[Mr Byrne]

Will the Minister intervene again and say whether it is more competitive to get into Oxford university or to get on one of his apprenticeships? Just tell us: which is easier?

[Mr Hayes]

I am not sure that that is particularly relevant to the question that I asked, but I will ask the right hon. Gentleman another question. His Government commissioned the Leitch report—[Interruption.] It was probably the right hon. Member for Morley and Outwood (Ed Balls) who commissioned it—he was running the show in the Treasury then, or so he now pretends. What does the Leitch report say? It says that we need to upskill and reskill the work force and that apprentices are a critical way of doing that. Is the right hon. Gentleman now denying that? Has he changed his mind, or does he in fact think that we need to use apprenticeships for that purpose?

[Mr Byrne]

I want apprenticeships for young people, and it is this Government who are not delivering them. That is why, all over the country, we now see long-term youth unemployment rocketing up. Some 233 Members of this House now represent constituencies where long-term youth unemployment has risen by over 100% this year. Overall, long-term youth unemployment is up by 64% since the start of the year. All over Britain, scars that we thought were gone for ever are reappearing, and not just in Labour constituencies, but in places such as North Dorset, Aylesbury and Stevenage. Some 238 of us now speak for constituencies where, since the election, youth unemployment is up by 20%.

[Dr Thérèse Coffey (Suffolk Coastal) (Con)]

rose—

[Mr Byrne]

In a moment.

The bad news is that business is saying that it will get worse before it gets better. In October, BBC Radio 1 surveyed the business community. It found that two thirds of firms surveyed said that the situation would get worse for young workers before it got better. Half said that the Government should do more to train young workers. That is surely a sentiment that the hon. Lady will agree with.

[Dr Coffey]

I think everybody in this House shares the sentiment that it is a tragedy for any young person who wants to work not to be able to get a job, but we are trying on that. What I would like to understand from the right hon. Gentleman is this. Under the last Government, people who were unemployed for 12 months were moved on to a training programme. That meant that they moved out of the unemployment figures, but they went back if they were not successful in securing a job. This is an opportunity for a genuine debate about the future of our country, but I am afraid that some of the—how can I put it—casual use of certain statistics is not helping us to achieve that.

[Mr Byrne]

Is the hon. Lady seriously denying that a crisis in youth unemployment is unfolding now? [Interruption.] I am glad that she says from a sedentary position that she agrees that there is a crisis, because the question now is what we do about it. That is the answer we want from the Government.

Before I set out what the Opposition believe is the right next step, let us remind ourselves who is paying the bill for this failure. Since the Government came to office, the benefits bill alone is projected to rise by more than £12 billion, which is £500 for every house in this country. To pay that bill for the new workless, the Government are having to squeeze working people through cuts to child care and tax credits, and the acceleration of the rise in the state pension age. Good people who are doing the right thing and who are trying to get on and go up in life are being squeezed to pay the bill for people who have been put out of work by this Government.

[Mr Sheerman]

Does my right hon. Friend agree that we need a massive plan for young people in our country, because this problem will get worse? We need education and training leading to work in the community and the environment. We need something bold and imaginative. The fact is that Government Members know that it is cheaper to keep young people on the dole.

[Mr Byrne]

My hon. Friend is absolutely right—

[Robert Halfon]

Will the right hon. Gentleman give way?

[Mr Byrne]

No. I could speak about this all afternoon, but I know that many hon. Members want to speak, so let me draw my remarks to a close by outlining what the Opposition believe should be done.

The Opposition believe that the starting point should be a new tax on bank bonuses. That is what this country is crying out for. There are only a few weeks left before the Chancellor’s autumn statement. The Secretary of State is not here but I hope he reads Hansard. Let me give him some advice about what he should negotiate for. He should be putting on the table the five-point plan that my right hon. Friend the shadow Chancellor has set out before the House.

Let us set out what that plan means for young people in this country. Many people in this country deserve a tax cut, but our country’s bankers are not among them. The scale of the imminent bank bonus round is already in the news. I see that there is a bonus pot of £500 million at Royal Bank of Scotland—shareholder: Her Majesty’s Government. Here is a sentiment with which most hon. Members can agree. Lord Oakeshott, the former Liberal Democrat Treasury spokesperson said:

“I don’t want my taxes going to pay for hundreds of RBS investment bankers taking home millions in bonuses as their profits tumble.”

Many hon. Members would agree with that. The Opposition advice is simple: let us have a fair and sensible tax on bankers’ bonuses. That could create a fund of £2 billion, which we believe could help to get 800,000 back to work, including 11,500 jobs here in London; 5,000 in the south-east, the region of the Minister of State, Department for Work and Pensions, the right hon. Member for Epsom and Ewell (Chris Grayling); and 8,500 in my home region, the west midlands. That is the kind of action that the Secretary of State should propose.

[Chris Grayling]

Will the right hon. Gentleman give way?

[Mr Byrne]

I will give way in a moment. Let me tell the Minister this: that policy would be popular. Over the summer, I asked my constituents whether the bankers ought to share their blessings a little more generously and whether they should do more to help get young people back to work—97% of them said yes. That policy would be popular, so why is the Minister not proposing it?

[Chris Grayling]

I wonder whether I could just clarify a point. The Leader of the Opposition has previously announced that the bank bonus tax money will be spent on additional infrastructure, reversing child benefit cuts and paying down debt, and, I believe, seven other commitments. Will the right hon. Gentleman confirm whether those policies have now been dropped?

[Mr Byrne]

If the Minister wants a full breakdown of the costs, I will be happy to provide it for him; and if he wants me to support him in his negotiations with the Chancellor, I will be right by his side.

With that policy should come an acceleration of investment in capital infrastructure, as the CBI calls for today; a temporary cut in VAT to help families up and down the country; a one-year cut in VAT on home improvements; and a tax break for small firms that take on extra workers, especially young people, as proposed by the Federation of Small Businesses.

The whole country knows that this Government are failing our young people. This year, our country has seen one of the fastest ever increases in long-term youth unemployment. When the TUC, the CBI, the Prince’s Trust and the Work Foundation are telling the Government to change course, surely it is time for them to act. Before the Minister for Universities and Science, the right hon. Member for Havant (Mr Willetts), was encumbered with the cares of office, he wrote a book about the baby boomers. In the introduction, he writes that

“the charge is that the boomers have been guilty of a monumental failure to protect the interests of future generations”.

The Secretary of State for Work and Pensions, who is not here today, is—believe me—a baby boomer. If he does not change course, and fast, he will stand before the House guilty as charged.

[The Minister of State, Department for Work and Pensions (Chris Grayling)]

I regard youth unemployment as one of the most difficult parts of the legacy left to us by the previous Labour Government. In 2010, at the time of the general election, 930,000 young people in this country were unemployed. When Labour left office, there were more young people not in education or employment than when it took office in 1997. Labour also left behind one of the most difficult sets of economic circumstances that any incoming Government have ever faced. Indeed, we do not need to use our own words to describe that; we remember clearly the words of the former Chief Secretary to the Treasury, the right hon. Member for Birmingham, Hodge Hill (Mr Byrne), who left a note behind saying, “There’s no money left.”

[Mr Byrne]

Will the Minister just remind the House what level youth unemployment stands at today? Will he confirm that it is the highest figure on record?

[Chris Grayling]

Actually, youth unemployment—genuine youth unemployment—is not at the highest level on record. When we exclude from the figures full-time students looking for part-time jobs, the level of youth unemployment today is not the highest on record. However, I regard any level of youth unemployment as unacceptable, and something that we should work to try to solve.

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[Chris Grayling]

My hon. Friend has highlighted one of the many challenges that the previous Government left behind for us. There was a total failure to equip young people for the workplace and for a working life, a failure in our education system and many other failures, not least of which was the disastrous economic inheritance. When the Labour Government left office, they were borrowing £1 in every £4 that they spent. Our first priority remains sorting out the challenges in our public finances. Does anyone seriously believe that, if we were in the same position as some other European countries in failing to deal with our deficit, business would want to invest in this country rather than cutting jobs and moving elsewhere? It is my clear view that, had we not taken action to deal with the deficit, unemployment would be higher than it is now, rather than lower.

[Mr Byrne]

Can the right hon. Gentleman just remind the House by how much the Government have had to revise upwards their borrowing forecast over the past few months?

[Chris Grayling]

The right hon. Gentleman talked about international challenges, but let me remind him that, three months ago, youth unemployment was falling and was below its level at the time of the election. He should also remember that we are now in the middle of the biggest financial crisis in the eurozone in decades, perhaps in modern times, and that our labour market is not immune to that. However, we are now turning round the set of failed programmes that existed under the previous Government and putting in place measures that will make a difference to the long-term unemployed.

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[Chris Grayling]

As the hon. Gentleman knows, this Administration believe in localism, and a local authority is free to do what it wants to support the unemployed. I welcome any local partnerships to deliver that. I would still say, however, that the reality is that the future jobs fund cost massively more than comparable schemes, and we believe that the package we put in place is more cost-effective and likely to deliver better success rates.

[Mr Byrne]

rose—

[Chris Grayling]

I shall give way once more to the shadow Minister, but then I am going to make some progress in explaining what we are doing.

[Mr Byrne]

If the right hon. Gentleman believes the future jobs fund was too expensive, is he by implication saying that he is prepared to see youth unemployment go up, because that is what has happened since the election, after which he abolished the programmes? Is he saying that youth unemployment is basically a price worth paying?

[Chris Grayling]

One reason this country is in its financial predicament is that the previous Government did not understand value for money. They believed in throwing money at a problem, not trying to do the most cost-effective thing. That is one reason for the right hon. Gentleman leaving that note behind, saying, “No money left”.

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[Chris Grayling]

I pay tribute to one of our providers, EOS in the west midlands, which has just achieved its 1,000th job placement. I congratulate all its staff on their success—

[Mr Byrne]

rose—

[Chris Grayling]

I hope that the right hon. Gentleman will visit them.

[Mr Byrne]

I should love to do so, and when I do I shall ask EOS for its performance statistics, because I understand that the Minister has banned their publication. If he is so confident about the performance of the Work programme, he should tell the House what it is delivering.

[Chris Grayling]

The right hon. Gentleman is, classically, trying to have it both ways. On one hand he tells me off about national statistics, and on the other he tells me off for not obeying the rules on national statistics. What does he want? These are national statistics, and they will be published in line with national statistics rules. He will just have to wait.

What I will say now is that so far I am encouraged by the progress that is being made. All of us—Members in all parts of the House—need the Work programme to work and to make a difference for the long-term unemployed, and I am confident that it will do that. For the first time we are giving the providers genuine professional freedom to do what works for our young people, and I believe that if we trust the professionals and do not tell them what to do, as the last Government did, we are much more likely to be successful.

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[Guto Bebb (Aberconwy) (Con)]

My hon. Friend the Minister said that he believes strongly in localism, and so do I. However, having suffered under a Labour-led or Labour Administration in Cardiff for the past 12 years, it is sometimes difficult to keep supporting the idea of localism.

Since 2000, the level of Welsh GDP in comparison with the European average has fallen from 68.6% to 64.4%. At the same time, between 2000 and 2010, the proportion of young people aged 16 to 24 in Wales who are unemployed increased from 15.8% to 21.5%. The sad fact about this debate is that Opposition Members simply do not recognise that a failing economic performance is related to a failure to create jobs for young people.

Wales has had support from Europe on a regular basis because of the failure of the policies adopted by the Labour party in Wales. Such is the failure of the Labour Government in Wales to put together policies that make a difference that Wales is one of only eight regions out of 66 in Europe that have qualified for objective 1 funding to see its prosperity decline. To put that in context, over the past 10 years under Labour, Wales has gone backwards while even the Greeks have gone forward. That is the reality of living under Labour. I support localism, but in Wales we suffer for it.

We cannot divorce this debate from education, skills and training for young people. Recently, there was evidence from the largest inward investor in the south Wales valleys over the past five years that less than 20% of the young people who were referred for job interviews—not for high-level jobs, but for comparatively low-level jobs—had adequate skills in reading, writing and arithmetic, and, more importantly, adequate social skills. Is that a surprise when the Labour Government in Cardiff have deliberately decided to spend £600 per head less than England on educating young people? That is the reality of Labour.

We must take on board the need to create economic growth and prosperity. Jobs for young people will not appear in isolation. Opportunities for young people will come as a result of economic growth and success—something we desperately need. That is why it is crucial that we pay tribute to this Government for taking the issue seriously. The Work programme, which has been mocked by Opposition Members, will ensure that payments are made on the basis of performance. That is a move in the right direction. It means that people will have to be in position for 12, 18 or 24 months before payments are made. That is a sign of confidence in the ability of the programme to get people into private employment.

[Mr Byrne]

I am following the hon. Gentleman’s argument with care. Will he tell the House how he thinks the programme is going in his constituency, because long-term youth unemployment is up by 100%?

[Guto Bebb]

The shadow Secretary of State again makes the mistake of making a short-term point about unemployment in my constituency, without reference to the fact that the biggest employer in my constituency is the tourism industry, which is seasonal. As he wants to make an issue of youth unemployment in my constituency, it is worth pointing out that we have literally hundreds of people working in hotels, guesthouses and other tourism-related businesses there who are hard-working, successful and moving on. The sad fact is that a huge number of them are from eastern Europe. Those people have grasped their opportunity, but that opportunity has not been available to young people from my constituency because of the welfare state created by the Labour party, which is more interested in throwing money at a problem than solving it.

[Mr Byrne]

rose—

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[Mr Hayes]

I will not give way.

Hearing Labour Members talk about generational joblessness reminded me of the plight that my father and my grandfather suffered in the ’30s when they were jobless. The story now, as we have heard from Members across the House, is no less tragic than it was then. That is why the Government are doing something about it.

All hon. Members who have spoken in the debate must be disappointed by the motion. Like worn-out conjuror’s paraphernalia, it is all smoke and mirrors. It resembles the economic policy that the last Government practised when the shadow Chancellor was their senior economic adviser, and we all know where that led. It led to the point at which the shadow Secretary of State, who introduced this debate, left his famous letter saying “There’s no money left”. We can see the shadow Chancellor’s footprints and fingerprints all over the motion.

[Mr Byrne]

I am genuinely grateful for the tone that the Minister is trying to strike, but does he understand the signal that it sends, in a debate on youth unemployment, when the Department for Work and Pensions Minister cannot be bothered to turn up for more than half the debate and the Secretary of State is nowhere to be seen?

[Mr Hayes]

The right hon. Gentleman obviously wants to make party political and partisan points. However, I was suggesting, perhaps unfashionably—perhaps this is not typical for the Opposition—that this matter goes beyond party divides, and that we should be united in our concern and in a call for action.

The shadow Chancellor is not without redeeming skills. I understand that, when he was at public school, he was good at playing the violin. So Balls fiddles while Byrne roams around talking down Britain’s chance to succeed.

Let me deal with the three principal points that have emerged from the debate—first, the future jobs fund. It was by far the most expensive part of the September guarantee package, at £6,500 for each individual, and 50% of the people who were under the influence of the fund found themselves unemployed eight months later. That is why we questioned its value—not because it did no good, but because it did not do enough good and was simply not cost-effective.

The second big issue that has been raised today is that of NEETS. The right hon. Member for Birmingham, Hodge Hill (Mr Byrne) and the hon. Member for Leeds West (Rachel Reeves) must know that the NEETS figures are part of a deep, long-term structural issue. Throughout the good years, the NEETs figures were at an unacceptable level. The right hon. Gentleman will see from the figures that in 2009, on Labour’s watch, the number of NEETs rose to 925,000. The truth is that youth unemployment involves long-term structural and systemic issues, and this debate was a chance for us to consider them seriously. Instead, what we have heard from the Opposition was little more than party political knockabout.

The third point to emerge from the debate relates to apprenticeships. Let us deal with them head on. I shall leave aside the fact that the right hon. Gentleman has rubbished all those in his constituency doing apprenticeships in their 20s—people like those at Jaguar Land Rover or at BT.

[Mr Byrne]

Will the hon. Gentleman give way?

[Mr Hayes]

No, you had your chance.

The right hon. Gentleman rubbished people at BT, Honda and British Gas—[Hon. Members: “Give way.”] I give way to him.

[Mr Byrne]

Will the Minister tell the House by how much youth unemployment will fall as a result of his apprenticeship programme?

[Mr Hayes]

The right hon. Gentleman knows the answer: over two years, the growth in apprenticeships for people under the age of 19 has been 29% and for people aged between 19 and 24 it has been 64%. Labour could only dream of those figures, and would have died for them in government. The number of apprenticeships for young people is growing. There are new opportunities, and while Labour is deliberating, the Conservatives and Liberals are delivering. That is the difference.