Youth Employment

Rachel Maclean Excerpts

Wednesday 6th December 2017 Westminster Hall

[Mhairi Black (Paisley and Renfrewshire South) (SNP)]

I congratulate the hon. Member for Chichester (Gillian Keegan) on securing this debate on an often neglected but none the less important issue. I also congratulate her on being, I believe, the first female MP to represent her area—well done on that.

When doing research ahead of this debate, I was disheartened, although not surprised, to learn that people aged 16 to 24 are more likely than any other age group to be employed on zero-hours contracts, be in temporary employment, be stuck in part-time employment or be in unskilled work.

[Rachel Maclean (Redditch) (Con)]

The hon. Lady is absolutely right to highlight that issue, but does she recognise that the research briefing shows that, although zero-hours contracts do not suit everybody, they do suit a number of people? Some people study at the same time and welcome the flexibility that zero-hours contracts give them. My son is on a zero-hours contract and it suits him down to the ground. He is 18 and is getting experience he would not otherwise get.

[Mhairi Black]

I genuinely appreciate the hon. Lady’s point, but if she is suggesting that all young people benefit from zero-hours contracts, she is on a different planet. If that is not what she is saying, that is fine. That kind of overly positive attitude towards zero-hours contracts is something that we would read in a Tory party briefing, rather than any other briefing.

I suspect that the Government’s response to any criticism during this debate will be to say that the number of young people not in education, employment or training has been slowly falling—magic! We could say, “Well done,” welcome the fall and simply leave it at that, but like all things in life the situation is more complicated than that. That kind of argument completely ignores the quality of the work. Patting ourselves on the back about the falling numbers is all well and good, but if they are falling because people are working in insecure jobs that do not last long, is it really worth celebrating? If the Government have lowered those figures by pushing people into destitution and poverty—that is my experience since I was elected—is that really something to celebrate? That is not to mention the pitiful minimum wage, which my hon. Friend the Member for Glasgow East (David Linden) talked about, which starts at £4.05 for those under the age of 18. I do not see how anyone can afford to run a household on £4.05 an hour, especially if we consider the fact that the Government have seen fit to take away housing benefit from 18 to 21-year-olds.

Organisations such as the Resolution Foundation are reporting that the Government’s tax and social security policies will drive the biggest increase in inequality since Thatcher. I know that the Government greatly admire that woman, but perhaps they will look past their ideological nostalgia and look again at how they achieved those falling numbers.

The Government could consider following the lead of the Scottish Government, who achieved their target of reducing youth unemployment by 40% four years ahead of schedule. Going further, the Scottish Government will introduce a jobs grant to help even more 16 to 24-year-olds into work. Funnily enough, I highly recommend the Scottish Government’s work, given that Scotland has the lowest youth unemployment in the UK and one of the best youth employment rates in the whole of Europe.

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[Rachel Maclean (Redditch) (Con)]

I congratulate my hon. Friend the Member for Chichester (Gillian Keegan) on calling this critical debate on an issue that affects all Members of Parliament. I have certainly been inspired by her story. She is a fantastic example of the power of opportunity. When it is presented to a young person, it can enable them to reach their potential. I share the wishes of all Members of this House: all young people in all of our constituencies should be able to access those types of opportunities. I hope this debate will influence the Government’s thinking on the issue.

Work is important because it is not just an economic proposition. It is about more than just earning money; it is also about achieving our human potential and cementing our identities in the world. Who could have imagined that a young girl who grew up in Liverpool and started work at 16 could become a Member of Parliament? There are many more such stories that show the impact that work has on young people’s mental and physical health, and on their capacity to make a difference in the world. It is so inspiring to hear that.

Since I became an MP, I have focused on youth unemployment and worked with businesses and young people in Redditch. I started a Redditch mentors programme, and I am encouraging businesses to work with schools and colleges in my constituency to ensure that young people see what is available for them in the area. That is why I am backing the campaign for an institute of technology in Redditch, which would be a fantastic step forward for our town. Before I came to this House, I set up an education and skills charity, and I worked in Birmingham introducing employers to schools, because at that time we were suffering from the devastating impact of the financial crash, under the Labour Government, which caused record rates of unemployment in that area.

I want to make two major observations. The Labour Government did some very good things for our country—I congratulate them on their focus on higher education—but they neglected to think about the technical, practical and IT skills that our young people need. They missed a massive opportunity. The Government are now rightly focusing on those skills and are putting a lot more effort into careers education, T-levels and institutes of technology up and down the country. That is the right thing to do.

[Leo Docherty]

My hon. Friend is making an eloquent point about her constituency of Redditch. I am very pleased that my constituency of Aldershot has experienced a remarkable decrease in youth unemployment: it was 450 back in 2010, and it is now 110. Is there a similar picture in Redditch? I would be very interested to learn whether there has been a similarly remarkable decrease in youth unemployment in recent years.

[Rachel Maclean]

I thank my hon. Friend for bringing me on to the next point in my speech. I am delighted to hear that youth unemployment in Aldershot has gone down, and I am pleased to say that it is a similar picture in Redditch. In 2010, 620 young people were unemployed and the figure now is 185. That is a significant drop, with 435 fewer unemployed young people.

I want to return briefly to the point made by the hon. Member for Paisley and Renfrewshire South (Mhairi Black) about zero-hours contracts and flexibility. I accept that they should not be forced on people—I want to put that statement on the record—but they offer flexibility for young people. Apprenticeships give people the flexibility to earn while they learn. The workplace today is changing massively, as are jobs and work. We need to make sure that employers get behind that in a positive way so that it is an opportunity for young people.

[Mhairi Black]

I accept what the hon. Lady said for the record, but does she also accept that zero-hours contracts—certainly in the experience of my constituents and even people I know—are forced on people? Not only are they expected to function with a household and often with a livelihood and children; they also live with uncertainty about how much money will be coming in. That, unfortunately, is a reality for far too many people.

[Rachel Maclean]

I completely accept the hon. Lady’s point. We have a picture of much lower employment across the country, including in her constituency. The Select Committee on Business, Energy and Industrial Strategy is specifically considering cases of exploitation.

[Stephen Kerr]

Is my hon. Friend looking forward to the Government’s formal response to the Matthew Taylor report, which we hope will go some way towards ironing out some of the inequities that might exist in the issues raised by the hon. Member for Paisley and Renfrewshire South (Mhairi Black)?

[Rachel Maclean]

Yes, and I thank my hon. Friend for reminding me about the absolutely brilliant work that is being done. This Government banned exploitative zero-hours contracts that prevent people from taking on other work, so now such contracts can be a solution, although I still recognise that they should not be forced on people or be the only option. We want more opportunities across the board for people of all ages.

I will finish by bringing to the House’s attention another positive story that I heard from my Jobcentre Plus office in Redditch. My constituent, who was under the local authority care system, attended her universal credit appointment and was asked by the work coach why she was making a claim. She said that she desperately needed to get a job; she was not happy in her care home and she needed to earn to move on. The work coach explained that she would not be entitled to universal credit because the local authority was responsible for her until her 18th birthday, but that the jobcentre would help by looking over her CV and advising her about job search sites. At the time there was a provider in the office with whom the work coach worked closely. They discussed what the provider could offer and how people could be helped into work.

Redditch Jobcentre Plus has a very high success rate for customers getting training through the provider, the Training Academy. The work coach took my constituent there to introduce her personally and to explain that she was only 16. The contact at the provider asked if he could help my constituent in any way and invited her to enrol at the academy the following day. That day, the work coach received an email to say that the provider had secured an interview on the same day for my constituent, closely followed by an email with a photograph of her holding up a plaque stating, “I got the job”. What a fantastic result for her: she went from being told that she would not be entitled to any universal credit, to securing full-time employment within two days. I have many more stories, but that is a fantastic example of how universal credit is helping young people into employment when provided with a package of full support, as is the case in Redditch.