Unemployment: Youth Unemployment

Lord Roberts of Llandudno Excerpts

Monday 18th November 2013 Lords Chamber

Asked by

[Lord Roberts of Llandudno]

To ask Her Majesty’s Government what steps they will take to create all-party consensus to tackle long-term youth unemployment.

[The Parliamentary Under-Secretary of State, Department for Work and Pensions (Lord Freud) (Con)]

My Lords, we are providing young people with the help they need to get back to work through Jobcentre Plus, the youth contract, the Work Programme, traineeships and apprenticeships. Our approach is working. Over the past year, the number of JSA claimants aged 18 to 24 has dropped by 84,800. We have also made £55 million available to cities for them to develop new and innovative ways of reducing long-term youth unemployment.

[Lord Roberts of Llandudno (LD)]

I am sorry that the Minister does not seem to share my deep concern about the problem of youth unemployment. Is he aware that 21% of young people aged between 16 and 24 are currently out of work? Does he know that long-term youth unemployment has more than quadrupled in the past 10 years? Some 115,000 18 to 24 year-olds have been out of work for two years or more. Whichever parties are in government in 2015, they will have to tackle long-term unemployment. We have tried to tackle this problem over the past 10 to 20 years. We must tackle it together and we must share the concern. If we cannot share the concern, is it not time to put our differences aside and to work together to resolve this nightmare situation for thousands of our young people? Will the Minister lead us in arranging some measure of co-operation?

[Lord Freud]

My Lords, the short answer is no. The policies of the previous Government were extraordinarily expensive. The Future Jobs Fund was introduced by the previous Government. At the time, I was in the department as an independent adviser, and that shocked me somewhat. It cost £6,500 for each job and half the people were back on benefits at the end. That is more or less the same performance as the work experience programme, which costs only one-20th.

I agree that the figures about which my noble friend is so concerned are a real concern and have been for a long time. I look at the figures for the unemployed and inactive youth. In 1997, it was 1.1 million youngsters. By 2010, after the longest boom in our history, it had risen to 1.4 million. Under this Government, in the worst recession since not the 1930s but the 1920s, it has come down 89,000 to 1.2 million. That is the way in which to have proper policies to handle the structural problem of youth unemployment.