Youth Employment (Wirral)

Mary Glindon Excerpts

Tuesday 14th September 2010 Commons Chamber

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

I congratulate the hon. Member for Wirral South (Alison McGovern) on securing her first Adjournment debate on a subject that is a matter of concern across the House. I share her concerns about Wirral and Merseyside. In the previous Parliament I was the shadow Minister with responsibility for building knowledge, understanding and ties between my party and the people, businesses and communities of Merseyside, and I also spent time in Wirral supporting my hon. Friend the Member for Wirral West (Esther McVey).

The hon. Lady mentioned the 1980s, but it is not what happened 30 years ago that defines the present moment. What defines the present moment is the failed inheritance from the previous Government. They had 13 years of unprecedented economic growth, and they spent billions of pounds on welfare programmes, but the number of people on out-of-work benefits—in Merseyside and elsewhere—remained stubbornly high. They failed to get people off benefits and into work. That failure matters now, when we are dealing with the cyclical impact of a recession, because we have to deal not only with those who have lost their jobs as a result of the recession and those who are entering the jobs market for the first time, but a huge block of people who have been on benefits for year after year. It makes the challenge that we face—of getting as many of our citizens into work as possible—much bigger than it should have been.

The hon. Lady is right to say that Wirral, and Merseyside as a whole, have suffered from the recession. In Wirral the Swiss food company Givaudan has closed, with the loss of 150 jobs, and jobs have been lost in other parts of Merseyside, leading to real pressures on the community, as in other parts of the country. We have to create an economic environment in which businesses can grow, develop and create sustainable jobs for the future, and I am confident about Merseyside in that respect.

If people spend a lot of time in Liverpool and around Merseyside, they quickly recognise what a wealth of enterprise, ideas and knowledge there is in and around the region that can be harnessed very effectively to create the opportunities of the future. There is a really dynamic spirit coming out of the universities in Liverpool. I have seen some great young businesses in the area, and I am confident that we can create the right environment there—an environment in which we charge less for employers who take on their first few employees; in which we cut the national insurance they pay; in which businesses pay less in corporation tax; in which we seek to reduce the burden of regulation; in which there are fewer health and safety regulations that cost small businesses; and in which we try to simplify the environment for businesses to work in.

In that kind of environment people will say, “Yes, I can do it. I can start a business. I can start to create jobs.” That way we can start to deal with the big problem that the hon. Lady rightly pointed out with unemployed young people. Last year there were 5,500 unemployed 16 to 24-year-olds in the Wirral—an unemployment rate that has stayed stubbornly high—but that is not simply down to the current recession. The level of young people not in employment, education or training has remained stubbornly high throughout the past 13 years, and is higher now than it was in 1997. We really have to change that.

The hon. Lady referred to the future jobs fund. Many of the employment programmes we inherited from the previous Government were not effective. I understand the motivation for the future jobs fund, but we found it to be a scheme that cost a substantial amount of money and generated temporary jobs in and around the public sector, but did not create the kind of long-term opportunities for young people that would give them skills to last a career. Frankly, we felt that we could do better. However, she is wrong to say that we simply came in and scrapped the future jobs fund. We did not. Future jobs fund jobs are still being created today. However, we have said that we will phase out the scheme and put in place a number of measures next year, including the introduction of our single Work programme, about which I will talk more in a moment.

My hon. Friend the Member for Wirral West is right about the Government’s decision to deliver 50,000 extra apprenticeships. An apprenticeship is a much better way of giving somebody long-term skill opportunities than putting them into a temporary placement as the future jobs fund would.

[Mrs Mary Glindon (North Tyneside) (Lab)]

The Secretary of State is talking about apprenticeships, which are fantastic for the young people who have the confidence and ability to engage with them. However, the future jobs fund helped some young people who were nowhere near ready to be apprentices and who needed that extra lift. Without that, a whole layer of young people will be put on the scrap heap. That is the difference. What he is talking about is fantastic, but he has to consider what the future jobs fund did to help young people whose situation did not allow them to take up an apprenticeship—people who were not apprenticeship-ready.

[Chris Grayling]

Let us be clear: the hon. Lady is absolutely right to say that we are dealing with very real issues for young people, and one certainly finds that in and around Merseyside. I have spent a lot of time with voluntary sector groups working with young people who have some pretty difficult circumstances in their lives. The reality is that many people from those difficult backgrounds emerge from school and struggle to enter the workplace, having not developed skills in school and having fallen behind for a variety of reasons. We have to get to grips with that.

That is one reason why this Administration are pressing ahead with the pupil premium. Hon. Members will know that often young people fall behind during early years development, at the age of one, two and three, and then get to school already behind their peers, never catch up and end up leaving school without basic levels of literacy and numeracy. That is one reason why we are putting the pupil premium into some of our most challenged schools—so that we can try to help some of those young people to catch up.

The hon. Member for North Tyneside (Mrs Glindon) is right to say that we have to do more preparatory work for young people to get into the work place, and that will be one of the key aims of the single Work programme. On the one hand, we are looking to build skills, which the apprenticeships programme is certainly designed to help achieve. However, the Work programme is the most important part of what we are trying to do. It will be introduced next year and will take over from existing programmes, some of which—such as pathways to work, which was highlighted by the Public Accounts Committee this week— have not worked, and others of which, such as the future jobs fund, we judged were not delivering value for money, given the high cost and the nature of the employment provided.

I am keen to see the creation of an environment in which we have specialist organisations working with people of all ages—including young people, who have precisely the kind of challenges to which the hon. Lady referred—by helping them to move into the workplace, build up their confidence, develop an understanding of what they need to get into work, establish work placements for the first time, build up work experience and make the jump into the workplace. That is the nature of the single Work programme.