Youth Unemployment

Lord Baker of Dorking Excerpts

Thursday 15th October 2020 Lords Chamber

Asked by

[Lord Baker of Dorking]

To ask Her Majesty’s Government, further to the estimate by the Office for National Statistics in Labour market overview, UK: October 2020, published on 13 October, that approximately 60 per cent of those unemployed as a result of the COVID-19 pandemic are aged between 16 and 24, what action they are taking to reduce youth unemployment.

[The Parliamentary Under-Secretary of State, Department for Work and Pensions (Baroness Stedman-Scott) (Con)]

My Lords, the Government are taking unprecedented action to protect young people’s jobs, with more than 9 million of them supported via the furlough scheme. Earlier this year, we announced our £30 billion Plan for Jobs, which provides an unlimited number of Kickstart placements, recruits new youth employability coaches and establishes youth hubs across the country. We are also expanding our excellent sector-based work academy programme to offer bespoke opportunities to support claimants to fill job vacancies and pivot into new careers.

[Lord Baker of Dorking (Con) [V]]

In July, about a quarter of a million 18 year-olds left schools, sixth-forms and other colleges. Most of them are now on the unemployment register. I accept that Kickstart will help trainees to some extent, but much more is needed. An unemployed 18 year-old should be able to take a one-year course, such as an HND or an HNC, to acquire better skills. If they do this, however, they must pay £6,000 or more for the course; often, they have to take out a loan. It is morally and politically unacceptable that we expect 18 year-olds to take out a loan to receive a training course. These courses must be free. I ask the Minister to convey my views to other Ministers because, rest assured, we will need more measures to reduce youth unemployment.

[Baroness Stedman-Scott (Con)]

I am happy to relay to Ministers the noble Lord’s concerns about loans and the fact that 18 year-olds are asked to take them out. I will certainly pass his concerns on to the Department for Education as well. However, we have launched a wide-ranging youth employment programme. We have the National Careers Service and the new enterprise allowance. We are doubling the number of work coaches; please do not underestimate the work of these great people and the difference that they are making in getting young people into jobs, which is what we all want.