Youth Employment

Margaret Greenwood Excerpts

Wednesday 6th December 2017 Westminster Hall

[Margaret Greenwood (Wirral West) (Lab)]

It is a pleasure to serve under your chairmanship, Mrs Moon. I congratulate the hon. Member for Chichester (Gillian Keegan) on securing this debate on such a vital issue. Finding a first job is part of a young person’s passage into adulthood. It is important that young people get the education and training they need and make the transition into employment smoothly, without spending a long period out of work.

At first sight, the youth employment statistics look like good news. Unemployment among young people has been falling, as has unemployment generally, and the Government have set a target of 3 million new apprenticeships by 2020. In the period July to September 2017, the unemployment rate for 16 to 24-year-olds not in full-time education was 10.3%, compared with 11.7% a year ago. However, youth unemployment remains much higher than unemployment among the working-age population as a whole, which according to the latest figures is 4.3%.

If we look more closely at the picture, we see further causes for concern. Some 12.3% of 16 to 24-year-olds were not in education, employment or training in the second quarter of 2017. That figure is even higher in some places and among certain groups.

A survey by Impetus Private Equity Foundation’s youth job index in June 2017 estimated that 1.18 million young people were not in education, employment or training for six months or more. In addition, the number of young people spending 12 months or more not in education, employment or training increased from 714,000 last year to 811,000 this year. That can have an extremely negative impact on a young person’s mental and physical health and their future employment prospects. About 5% of 16 to 17-year-olds, for example, are not in education, employment or training, despite the requirement that all young people are to be in education or training until they reach the age of 18. A significant number of people—290,000 at the last count—are therefore slipping through the net. I would be interested to hear what the Government plan to do to address that.

The proportion of young people who are not in education, employment or training is about 15% in Yorkshire and Humberside. The Social Mobility Commission’s “State of the Nation” report, published last week, highlighted that some affluent areas such as West Berkshire, the Cotswolds and Crawley are among the worst for offering good education and employment opportunities for their most disadvantaged residents. Some young people can be caught in a cycle between being in and out of employment, education or training, which again can have long-term consequences for their earnings, employment, health and wellbeing.

It is extremely difficult to estimate accurately the number of young people not in education, employment or training in the UK, and the numbers may be much higher than the official figures. Evidence from London and Manchester youth talent match programmes suggests a significant number of hidden NEETs, as they are referred to. London Youth’s talent match found that 35% of its intake from January 2014 to December 2016 were people who could be said to be hidden NEETs. Talent match is funded by the Big Lottery Fund and the European social fund. While the Government have guaranteed funding agreed up to the point of Brexit, there is a question of where funding will come from after that. I should be grateful if the Minister would respond on that point.

How do the Government plan to ensure that those hidden young people are found and given the support that they need? That was once a local authority responsibility but, due to financial pressures, many local authorities have reduced youth services and do not track the whereabouts of the local youth population.

People in certain groups are especially likely to be not in education, employment or training. The proportion of 16 to 24-year-olds not employed or in training or education was higher for some ethnic groups than others: for example, it was highest for those from Pakistani and Bangladeshi backgrounds, at 16%. Thirty per cent of young disabled people are not in education, employment or training, nor are 40% of care leavers aged 19 to 21, compared with 14% of all 19 to 21-year-olds. Those statistics should really concern us. What additional support is being put in place to ensure that those young people are given the same opportunities to progress as other young people?

Last week, the Government launched a new strategy to support disabled people into finding work, “Improving lives: the future of work, health and disability.” However, the Work and Health programme is a much smaller scheme than the Work programme and Work Choice. Overall, there will be an 80% reduction in specialist employment support from the Government—most employment support for disabled people is provided by Jobcentre Plus, but it has adopted a generalist model for work coaches rather than one where they specialise in specific kinds of claimants. The Work and Health programme is targeted at people who are likely to be able to find work within 12 months with much more specialist support. However, the reality is that, for young people with the greatest barriers to finding work, it may take much longer. The Big Lottery Fund’s talent match scheme, aimed at young people who are furthest from the jobs market, has found that it can take up to two years for the people they work with to find employment. It is important that specialist support continues as well once someone starts a job, so that they can continue in it.

We also need to consider those young people more generally who are registered as unemployed and who, with the closure of the Work programme, will be increasingly likely to receive employment support directly from Jobcentre Plus. Some of the same problems with the way that Jobcentre Plus operates in relation to people with specific needs apply to young people more widely. Jobcentre Plus has adopted a generalist model for work coaches, but supporting young people to find employment may require more specific knowledge of the job market and skills.

The Select Committee on Work and Pensions, in its “Employment opportunities for young people” report, published at the end of March, suggested that the DWP might look at recruiting people with experience as youth workers or coaches. It also suggested that the DWP could learn from schemes such as the MyGo employment service in Suffolk, which operates from modern, open buildings that are more welcoming than many jobcentres. In fact, it is open to young people regardless of whether they are claiming benefits or not.

I have spoken in a number of debates in this Chamber to oppose the Government’s programme of jobcentre closures. Will the Minister tell us what consideration the Government have given to using the end of their contract with Trillium to renovate the estate and provide jobcentres with a much better experience for users, rather than simply decimating the numbers of offices? Will he also tell us what consideration the DWP has given to the use of texts and social media to reach out to young people who are unemployed, and whether texts are used to remind them of appointments—as is done for NHS appointments—at all jobcentres, decreasing the risk of sanctions?

As the full service of universal credit is being rolled out, those young people who are registered as unemployed will receive support through the youth obligation, which will mean an intensive support programme from day one of their claim. Young people who remain out of work for six months will be expected to apply for an apprenticeship or traineeship, or take up a work placement. There is anecdotal evidence, however, from organisations in the field that delivery of the youth obligation is patchy, and that some work coaches do not know what it is. Will the Minister give us the DWP assessment of how effective the youth obligation has been so far?

The Work and Pensions Committee highlighted evidence of concern from employers about compulsory work placements. Will the DWP ensure that the Work programme’s rigid approach to placements is not repeated? In particular, will it ensure that there is flexibility in the youth obligation for young people, especially those facing the greatest barriers, so that, where necessary, steps to prepare for employment may be given priority rather than a placement? I think here of basic skills such as literacy, numeracy and IT skills, as well as other steps, perhaps to improve social skills and build self-confidence.

It is clear from the “State of the Nation” report that the unequal opportunities that young people face have roots in the poverty and inequality they experience as they grow up. In the north-east and south-west, young people on free school meals are half as likely to start a high-level apprenticeship. The Government’s target of 3 million new apprenticeships by 2020 is laudable but, in the first quarter following the introduction of the levy in April this year, there was a 59% fall in apprenticeship starts, and the majority of starts were at higher levels for older workers. What will the Government do to ensure that young people under the age of 24 do not lose out as a result of businesses using the levy to upskill their existing workforce and recruit staff at level 4 apprenticeships?

Beneath the apparently improving youth employment figures lies a more complex story. Evidence from specialist organisations suggests that there are schemes that are working well and producing results for young people with the greatest barriers to finding work. Those young people need support tailored to their specific situation and experience but also time for that support to make a difference. I hope the Government are listening.