Question to the Department for Work and Pensions:
To ask His Majesty's Government what steps they are taking to bring the level of youth unemployment to at or below the OECD average; and what assessment they have made of the impact of increases in employer National Insurance contributions on youth unemployment levels over the next five years.
The UK youth unemployment rate is currently 3.3%pts above the OECD average, but we have plans in place to tackle youth unemployment.
The ‘Get Britain Working’ White Paper sets out this government’s plans to deliver a new Youth Guarantee to ensure all 18–21-year-olds in England have access to education, training or help to find a job or apprenticeship.
Our aim for the Youth Guarantee is to help all young people earn or learn. We will work in partnership with organisations at the national and local level to offer exciting and engaging opportunities to young people. This could include apprenticeships, work experience, training courses or employability programmes. Work is underway on the design and delivery and starting from Spring 2025, eight trailblazers in mayoral authorities across England will test delivery of the Youth Guarantee.
Young people will continue to have access to the current core national offer and entitlements for employment support for people aged 16-24. This includes a mix of national and localised initiatives and provisions designed to improve skills, employability, and access to job opportunities. Key elements include: the DWP Youth Offer, Apprenticeships, Sector-Based Work Academy Programmes, the National Careers Service, Skills Bootcamps, and the Flexible Support Fund. These programmes collectively provide young people with pathways to employment, focusing on addressing local labour market needs and individual barriers to work.
The Office for Budget Responsibility’s October 2024 forecast, which takes into account tax measures announced in the Budget, expects the 16+ unemployment rate will fall to 4.1% next year and remain low until 2029.