Oral Answers to Questions

Rachel Reeves Excerpts

Tuesday 24th April 2012 Commons Chamber

[Mr Hoban]

My hon. Friend is absolutely right. Some 160,000 wage incentives, worth up to £2,775 each, are available for employers who recruit an 18 to 24-year-old through the Work programme.

[Rachel Reeves (Leeds West) (Lab)]

Can the Minister tell us how many young people have now been out of work for more than six months, and how that compares with the figure of a year ago?

[Mr Hoban]

I would have thought the shadow Chief Secretary would have welcomed the fact that youth unemployment fell last month. That demonstrates that the Government are taking action to tackle the scourge of youth unemployment—a problem that did not emerge under this Government, as youth unemployment also rose when her party was in government.

[Rachel Reeves]

The Minister failed to answer my question, so let me tell the House that 170,000 young people have been out of work for more than six months. That is an increase of 114% since just a year ago. Does the Minister think it is fair that families with children are being asked to pay a higher price for deficit reduction than the banks, and if not, will he reconsider reinstating the bank bonus tax to support young people back to work—especially as his Budget has given a tax cut worth £40,000 to 14,000 millionaires?

[Mr Hoban]

I just point out to the hon. Lady that the last Labour Government ruled out introducing a bank levy. That levy is raising £2.5 billion, and it will raise £10 billion over the lifetime of this Parliament. I think it is right that banks should pay a fair contribution for the risks they have posed for the UK economy, and I would have thought she would have welcomed both the bank levy and the fall in youth unemployment last month.