Young Jobseekers

Richard Graham Excerpts

Tuesday 27th October 2015 Westminster Hall

[Chloe Smith]

I am grateful to my hon. Friend for giving that example. Apprenticeships provide many opportunities for young people.

This was the subject of the debate last night. One young person, whom I will faithfully report, said the rate paid is too low. Perhaps that is a topic for a long debate another day. None the less, there are many opportunities out there for earning while learning, and that package can be very attractive to young people who are looking to take their first steps and find their first opportunities.

[Richard Graham (Gloucester) (Con)]

Like others, I congratulate my hon. Friend on being a leading light in helping young people to find worthwhile employment. She is right to focus on apprenticeships. The increase in the level of apprenticeships in Gloucester almost directly mirrors the drop in youth unemployment from 1,000 to 250 over the past five years. I suspect—my hon. Friend might want to comment on this—that the employment figures for Europe will show a similar correlation in the countries that encourage apprenticeships, such as Germany and us, and those that do not. Will my hon. Friend say something about the fact that, although there are minimum rates for employing apprentices, there is no maximum rate? Many of us who have our own apprentices pay significantly over the minimum rate.

[Chloe Smith]

I am grateful for that point, which stands by itself so I shall welcome it and move on to the need for a strong economy.

The single best way to get young people into opportunities is for there to be lots of opportunities to start with. The Government have overseen significant private sector job growth, and the economy continues to grow. More jobs have been created in Britain recently than in the rest of Europe put together, and that is undeniably good news for a generation of young jobseekers who can look to a brighter future.

We need to connect young people to those opportunities—here comes the meat of the debate. A local example illustrates my point. I founded and run a project called Norwich for Jobs. In 2013, I looked at our local unemployment figures for those aged 18 to 24, and I knew that 2,000 unemployed young people was too many. Drawing together a team that could do something about it, we set about halving that number. In fact, we smashed the target we set ourselves in less than two years. So far, we have helped nearly 2,000 young people into work. About 600 still claim jobseeker’s allowance, and we want to encourage employers to give them opportunities now.

We did that by encouraging local employers to create opportunities; connecting young people with those jobs, with the jobcentre at the heart of the process; and focusing the community on a common goal. We are taking on a new challenge after having met our first target, and we are now using the power of that local network to help those claiming employment and support allowance—in other words, young people who want work but have a health condition or a disability. I strongly support the Government’s clarion call to be disability confident, and I call today on Norwich employers to consider what more they can do.

We are turning that one city project into a regional movement. The Norfolk and Suffolk youth pledge, led by the New Anglia local enterprise partnership, is a further strong example of the kind of collaboration that stands the best chance of helping young jobseekers. The pledge is that every young person in Norfolk and Suffolk will get the personal support they need to get an apprenticeship, training, work experience or a job within three months of leaving education or employment. The New Anglia skills board and Jobcentre Plus have been working closely with the two county councils, and indeed with me and others—I am on the board of the project—to develop the project. We are building on the successful roll-out of the MyGo service—the first of its kind in the UK—which was launched in Ipswich in 2014 and the project I outlined in Norwich. I am proud of that project, and hope it stands as an example to other hon. Members of what they can convene in their areas. Research by the Found Generation holds up MyGo, a youth employment centre that was the starting point of the Ipswich project, as a very powerful project.

How best can we help young people? I said that we should grow the economy and make connections. We should also share good ideas, which is why I have talked about those examples. I mentioned the all-party group on youth employment, and I welcome the members who are here today, including my hon. Friends the Members for Mid Dorset and North Poole (Michael Tomlinson) and for Bolton West (Chris Green). I welcome their presence, because we aim to share good practice. Our primary objectives are to promote youth employment in all its forms and the role of young people in the economy, to ensure that young people’s voices are heard, to highlight the need for good-quality opportunities and to share best practice.

We should value good-quality research and learn from it what we can do better. I will draw on two reports. YMCA England, of which I am a parliamentary patron—I am also patron of the Norfolk organisation—produced a constructive and practical research report, which I have in front of me, entitled “Safety Net or Springboard?” Its purpose

“was to examine how the social security systems could be transformed to better enable young people to find employment and fulfil their potential.

High levels of youth unemployment are not a new problem in the UK. While the global recession saw a significant jump in the number of young people facing unemployment, in reality, the upward trend started long before the financial crisis, as far back as 2004.

Given that numerous governments have tried a range of schemes to battle this problem with only mixed success, this research sought to give young people a voice in shaping any new approach offered, including the introduction of a Youth Obligation, a back-to-work scheme announced by the Government as part of the Summer Budget 2015.

Through a series of focus groups, young people from YMCA identified six areas they believed job centres could improve to increase their prospects of finding employment:…Understanding young people’s circumstances…Listening to young people’s aspirations…Supporting young people to look for work…Getting young people the right skills and qualifications…Securing young people with meaningful work experience”

and

“Retaining support for young people transitioning into employment.”

The evidence in the report is based on a series of focus groups that took place this summer across England in areas that many hon. Members here come from: north Tyneside, Birkenhead, Grimsby, Derby, Birmingham, Bedford, Dartford, Westminster, Horsham, Exeter and my own constituency of Norwich. The YMCA found that:

“The overwhelming feelings expressed by the young people participating in the research were ones of frustration and dismay towards job centres and the support they currently provide in helping to find employment. More than nine in 10 of individuals taking part in the focus groups believed the support they were currently or previously receiving from their job centre was not helping them find employment. Through the research, YMCA sought to understand why this alienation exists between young people and job centres and to identify what measures they felt were necessary to transform the job centre and the wider social security system from a safety net to a springboard into employment.”

I want to be absolutely clear that I have the highest respect for Jobcentre Plus staff. As my local examples demonstrate, I work closely with the team in Norwich and East Anglia, which is led by the excellent district manager Julia Nix. I see their dedication, innovation and hard work day in and day out.

[Chloe Smith]

I welcome my hon. Friend’s contribution. He makes the same point as I do. The best officials in the jobcentre are highly respected and are known for their work in the community. Their passion shines out and they embody the values of public service at every opportunity. They also take a hands-on approach, which is perhaps over and above the duties of a civil servant. They could well be expected to do their work from behind a desk, but the best officials do not do that. They go out and work hard in the community to get results. I welcome hearing my hon. Friend’s local example.

It is in that spirit that I mention the YMCA research today, because civil servants of the calibre of which we speak will want to do even better. The report states that

“many young people are continuing to be prescribed the same generic support, regardless of their circumstances and aspirations. This is creating a significant discordance between how young people view the service being provided and what governments believe they offer. While examples of good practice do exist, the research illustrates that these are few and far between”.

Let’s share the good ideas and let’s do better. The YMCA research proposes that the new youth obligation be matched with an obligation on jobcentres. It argues that the obligation should commit jobcentres to providing each young person accessing its services with a more detailed initial assessment with a closer focus on their personal circumstances and aspirations, a specialist youth work coach, more comprehensive sign-on sessions, more regular opportunities, better training and work experience, and options to discuss how available funding may be used to let them participate in training. The report also suggests that people should be able to participate in training for more than 16 hours a week without their benefit claims being affected.

I want to quote some of the young people in the research. Charlotte of Norwich says:

“I want the job centre to be a bit more understanding.”

Jordan of north Tyneside says:

“The job centre needs to stop treating everyone the same.”

Marcio of Bedford says:

“The job centre needs to really listen to young people to see what we want.”

Other voices in the report tell us why we must collaborate locally to bring about the chances that young people need. Another young person from Norwich says:

“Everyone is looking for experienced workers, but how are we going to be experienced workers when no one is giving out experience?”

Another from Norwich seeks more “volunteering placements”. I suspect that organisations listening to today’s debate may want to continue the digital debate and explain exactly what they can offer in terms of volunteering opportunities for young people up and down the country.

I would also recommend that Members take a look at the work of the Found Generation, as mentioned earlier. It is another extremely practical group that asks young people for their own solutions to the problem of young unemployment. In July 2014, it published “Practical Solutions to UK Youth Unemployment”, a report asking for four things. First, it asks that we expand

“the use of public sector procurement to create jobs for young people”,

which I note that the Minister for the Cabinet Office is now doing. Secondly, we are asked to back

“a national ‘kitemark’ to recognise ‘youth friendly’ employers”

and I note that at least one organisation, Youth Employment UK—the secretariat of the all-party parliamentary group that I chair—is already doing so. Indeed, hon. Members can qualify for the award, as I have. I am a recognised youth-friendly MP.

[Richard Graham]

Hear, hear.

--- Later in debate ---

[Dr Rupa Huq (Ealing Central and Acton) (Lab)]

I echo the congratulations to the hon. Member for Norwich North (Chloe Smith) on securing the debate.

Youth, the state of being young that is between childhood and adulthood, used to be relatively carefree. In some senses it is now extending—something I say as a mum, as well as an MP—with more and more pressures on us, and people of middle age such as me seem to be on an eternal quest for youth.

In my constituency the good news is that 226 young people are now claiming JSA, which is 49 fewer than last year. The figure seems to be going down—that is a reduction of 18%—although, as we have been cautioned, we do not know how many of the jobs are zero hours or casual and the like. Those “young people” are 18 to 24-year-olds, but there are often different measures of what we mean by young.

We have two Jobcentre Pluses, one in Acton and one in Ealing Broadway, but what I wanted to flag up is the fact of conditional welfare arrangements, or ones that require people to behave in a certain way and involve the application of sanctions or penalties if they cannot. From the figures that I have seen, such benefit sanctions are disproportionately affecting young people under 25—another different measure of youth—although that might include the homeless and the vulnerable. In the past year two reports have come out, one from the Joseph Rowntree Foundation and one from Crisis, with everything pointing in the same direction.

Young people account for the largest proportion of JSA claimants who are sanctioned, with two thirds of all sanctions applied to claimants under the age of 35—another different measure. We do not know the precise reasons—perhaps young people have more erratic lifestyles—but they need to be looked into and I will be interested in the Minister’s comments, because such a situation might lead to a vicious cycle. Those sanctioned might stop seeking support, hardship might result, people might fall out of the system altogether and, if they have dependent children, the sanctions might affect those third parties as well. It may be a case of unintended consequences, who knows, but it needs looking at, in case that group is suffering some kind of direct or indirect discrimination in the benefit system, leaving them more vulnerable to sanctioning, even if they are equally as compliant as others. That work needs to be done, because there is a concern, especially when the group faces challenges such as high rents and so on in a constituency such as mine.

According to the same YMCA report that the hon. Member for Norwich North cited, “Safety Net or Springboard?”, more and more conditions and expectations are being placed on young people applying for benefits. She also mentioned that young people want more personalised and meaningful support; they do not want to be simply a number. There seems to be a disconnect between people’s daily lives and the way in which jobcentres operate.

In my constituency we have an organisation called MyBigCareer, run by the energetic Deborah Streatfield. She is also campaigning for more mandatory careers advice at school, which I know exists, but it is sometimes only a link to a website, whereas her campaign is specifically for more one-to-one, personalised, sit-down advice. Will the Minister comment on that? My right hon. Friend the Member for Oxford East (Mr Smith) raised similar issues.

Everything needs to be put into a context. Since the previous Administration, employment and support allowance has gone, student grants have been abolished and housing benefit is no longer available to 18 to 21-year-olds. We have also heard that the so-called national living wage will not apply to the youngest workers. We do not want some sort of inter-generational conflict as a result. I found a blog that stated:

“UK Boomers slash benefits to young & force them to load up on debt while guaranteeing pensioners ever rising incomes.”

We do not want mistrust between generations, because young people are our future. I worry that some of the logical consequences of Government policy might lead there.

[Richard Graham]

Will the hon. Lady give way?

[Dr Huq]

I am about to finish, so I would rather not, if that is okay.

The Prince’s Trust—we are talking about Prince Charles, the heir to the throne—youth index uses a measure of 16 to 25, another different definition of what counts as young. One fifth of the respondents for the index said that they regularly fall apart emotionally and that they suffer from anxiety. It found all those mental health issues, so we do not want to be stoking things up.

There is much to agree with in the YMCA report. If we pick up any modern humorous dictionary of quotations, we will find many phrases about young people and youthful folly, such as, “You are only young once.” One such quote is from Oscar Wilde, who said:

“Youth is wasted on the young.”

We do not want to be in a situation where youth is wasted.

--- Later in debate ---

[Chris Green]

I agree. I think most people in the Chamber would agree that further development is required in schools and in other ways to get young people that first experience so that they can develop the business that they have always dreamt about starting.

[Richard Graham]

My hon. Friend has given a striking example of a can-do spirit and attitude. In a sense, I think that divides the House between those on the Government side who want to see employers providing those opportunities for young people to show that they can succeed as he has and those on the Opposition side who often lean towards giving the young more benefits, because they are not capable of working or whatever. Does he agree that the key to getting more young people into work is seeing opportunities provided in precisely the way the Government have done with apprenticeships?

[Chris Green]

Apprenticeships are a key way to get experience and it is really important that there is a whole range of ways to get into apprenticeships and guidance for that.

I am delighted that the Government are continuing to support young people moving into work, allocating £1 billion to the youth contract and ensuring that apprenticeships for under-25s incur no national insurance costs for employers. In my constituency, youth unemployment was at 8% in May 2010. Fast-forward five years and it was at 3.9%. Further, since 2010, Bolton West has had an increase of more than 4,000 apprenticeships.

This week, I am interviewing for an apprentice for my own constituency office. Apprenticeships are a vital way to give young people a chance to earn a salary while getting real work experience. A great deal has been done, but there is still much more to do in the future.

--- Later in debate ---

[Richard Graham]

I am absolutely delighted to hear that the hon. Gentleman is so committed to a can-do spirit that is focused more on providing opportunities than on regretting reductions in benefits to young people. I hope he will join me in recognising the extraordinary achievements across constituencies in most of the country in reducing youth unemployment. In my constituency, it has gone from 1,000 people, when the Labour party left power, to 250 today. I hope he will recognise that that is the result of a can-do spirit by Government, constituents, businesses and others working together.

[Nick Thomas-Symonds]

We will always welcome reductions in unemployment. This week, we are talking about the changes to tax credits that are affecting 3.3 million working families and taking away £1,300 a year from them on average. I am sure the hon. Gentleman will agree that that is certainly not a can-do spirit—that is clobbering people who are in work. I certainly do not commend that, and I hope he will join me in condemning it.

[Richard Graham]

The hon. Gentleman should listen—

[Nick Thomas-Symonds]

The hon. Gentleman should perhaps listen to his own constituents and the families who are losing out.

The statistics make for sobering reading: 683,000 people between the age of 16 and 24 are still unemployed, and 138,000 of those have been unemployed for more than 12 months. As a percentage, it does not get any better: 14.8% of the economically active population is unemployed. Even if we take into account those in full-time education, the figure is still 13.2%.

Nobody should underestimate the potential problems of youth unemployment for a person’s employability throughout their life. One of the contributors to the speech by the hon. Member for Norwich North made the point that young people want to get experience in order to get a job, but they cannot get a job and so cannot actually get the experience. If someone cannot get a job, there are also issues of not getting into the habit of working, not being able to develop skills and of feeling socially excluded from mainstream society. We have to tackle these issues. To do that, we need quality apprenticeships and quality work placements; in that sense, I commend to the Minister the approach taken by the Government in Wales.

Over the next three years, the Jobs Growth Wales programme will produce nearly 9,000 placements, each of which will be an initial six-month placement paid at or above the national minimum wage. I commend that strong, activist approach to the UK Government, because we really must not fail our generation of young people. If we do, it will be an intergenerational injustice.