Milburn Review: Interim Report

(Urgent Question): To ask the Secretary of State for Work and Pensions to make a statement on the publication of the Milburn report on young people and work.

Last week, Alan Milburn produced a powerful report on the crisis of opportunity facing young people. The Secretary of State asked him to lead this work because it is a crisis that has been ignored for far too long. Far too many young people are leaving education and not getting the chance to work. The human and financial impact on individuals can last a lifetime, and the economic costs are significant. It is clear that this is not a feature of the last year or two but a deep-seated and long-term issue.

Unlike the Conservatives, we will not stand back and abandon young people in the face of this crisis. During their last few years in power, the number of young people not in education, employment or training rose by a quarter of a million—a shameful legacy. Rather than holding young people in contempt, we believe in them. We are making opportunity for young people a national cause. We have begun with the youth guarantee, more work experience, workplace training and apprenticeships, hiring bonuses for employers who take on young people in regular or apprenticeship roles, and subsidised employment for young people who remain out of work for 18 months. That means, in total, half a million opportunities for young people to work, train or undertake apprenticeships.

We have undertaken welfare reform to remove barriers in the benefits system that trap young people. We have changed the law so that claimants on sickness and disability benefits have the right to try work without the fear of automatically triggering a benefit reassessment. We have narrowed the gap between the health element and the standard allowance—a perverse incentive of the last Government’s making—and we are investing in genuinely personalised employment support.

We have made a good start, but last week’s interim report is a call to action. That is why this Government are putting work and opportunity at the heart of everything we do, and we will go even further as Alan Milburn comes forward with his final report and recommendations.

I am grateful to you, Mr Speaker, for granting the urgent question. It is a shame that the Minister had to be dragged here. Last week, the Secretary of State was only too eager to talk about this report on the telly. Where is he today? Why so quiet now? I think we all know.

The Secretary of State has been caught out telling the devastating truth about Labour MPs:

“who can we tax in order to pay benefits to others”?

That is what Labour MPs really think, and that is what the Government have done. They have put up people’s taxes, spent more on benefits and left hard-working people with less to live off.

Once again, Labour’s shenanigans are getting in the way of something we really should be talking about. Every morning, a million young people wake up in Britain with nothing to do and nowhere to go. This is a disaster for our country, our economy and, worst of all, for all those young people: Labour’s lost generation. The Minister said that it started under us—yes, the numbers did start going up from the pandemic, so this was not a surprise for Ministers—yet here we are after almost two years of Labour in office and it still has no plan. All it has done is make the situation worse, and of course commission this big report.

Order. You get two minutes. [Interruption.] Yes, it is two minutes, and it has always been two minutes. I have not changed the rules. When I grant an urgent question, please stick within the rules. That helps me, because we have said that we will try to adhere to that.

That was a predictable set of questions from the hon. Lady, who has the audacity to label the NEETs of this country “Labour’s lost generation” when the number of NEETs increased by 250,000 in the Conservatives’ last few years in office. She tells us that there were no solutions in this report—that is hardly a surprise for anybody paying attention, given that it is an interim report, with further recommendations to follow.

The hon. Lady mentioned national insurance contributions. What does Alan Milburn actually say in his report? Let me direct the House’s attention to paragraph 268, which says

“the UK’s NEET crisis is much more long-term and deep-seated than any decisions taken in the last few years.”

Specifically on NICs, paragraph 266 says,

“it is worth remembering that those under 21 remain exempt from employer NICs and, as the review has already highlighted, the increase in youth inactivity long precedes any recent changes”. [Interruption.]

The hon. Lady chirps that I am in denial—this is the Conservatives’ record, their problem, and a mess that we will solve.

On that very point, there was no explanation—[Interruption.]

Order. Please, the urgent question has been granted, and I do not need Opposition Front Benchers thinking that they can shout the Minister down.

Thank you, Mr Speaker. Of course, there was no explanation or apology from the hon. Lady for the fact that her party left almost 1 million young people not in education, employment or training. That was a predictable omission, but an unacceptable one none the less, because discussing the rise in NEETs in recent years without discussing the actions of the past Conservative Government is rather like staging “Hamlet” without the Prince of Denmark.

On the Secretary of State’s comments, what he has said has been the same ever since he was appointed. He has said that we have to change the question and the system from “What benefits are you entitled to?” to “How do we help you change your life?” That is what matters and it is exactly what this Government are doing: fixing the broken welfare system that we inherited from the Conservative party, rebalancing universal credit, implementing right to try, tackling the Conservatives’ backlog on access to work, and, of course, providing our £2.5 billion investment in the youth guarantee. That is the welfare reform that this Government are delivering, with opportunity and work, especially for young people, at its heart, and the guarantee of a safety net for those who need it.

I call the Chair of the Work and Pensions Committee.

I welcome Alan Milburn’s report. The Select Committee is in the concluding stages of its own youth employment, education and training inquiry. We take account particularly of the drivers, and the Minister is right. As the millennium cohort study has shown, more than half of NEETs have experienced adverse and persistent child poverty and family adversity over the last 15 years, which has contributed to the current level. I really think that the shadow Secretary of State, the hon. Member for Faversham and Mid Kent (Helen Whately), should recognise that and apologise.

Is the Minister as concerned as me that we must not forget that, in addition to young people, hundreds of thousands of disabled people have had a lack of opportunity, and they have not had the profile that our young people are getting? They also need to be considered alongside young people, particularly in relation to employment support.

I thank my hon. Friend not just for her question but for the work that the Select Committee has done on its inquiry. Indeed, I know that Alan Milburn was before her Committee recently, speaking to the work that he is doing. She is absolutely right to call for a focus on disabled people too. Our Connect to Work agenda provides significant support. There is, of course, always more that we can do, but on this—as with those not in employment, education or training aged 16 to 24—we are determined to act, we have a programme to do so, and we take this extremely seriously.

I call the Liberal Democrat spokesperson.

It is a pleasure to follow the hon. Member for Oldham East and Saddleworth (Debbie Abrahams), who always has something of value to bring to the Chamber.

There are 1 million youngsters not in employment, education or training; this has been brewing for many years, but sadly has been exacerbated by the new Labour Government. We have seen the sad decline of our high streets over the last 20 years, a quarter of a million jobs lost in retail in the last five years and, since the last Budget, 100,000 jobs lost in hospitality. The dual impact of the national insurance change—the jobs tax—and business rates has hit hard. Whitbread has cut 3,800 jobs across the United Kingdom, with the closure of two restaurants in my constituency—one in Torquay and one in Paignton.

I welcome most findings of the Alan Milburn review; the Liberal Democrats welcome the sense of direction. However, I have some key questions. Does the Minister have some clear economic plans to grow jobs for young people, and how can we develop greater connections with our European partners in order to grow our economy?

The Liberal Democrat spokesperson will have heard the Prime Minister’s recent intent to work more closely with European colleagues, because of the economic benefits that working in partnership can yield. Further, the hon. Gentleman is right to recognise that this is a problem many years in the making. I welcome the broad support from Liberal Democrat colleagues for the interim review and I hope that will be the same when the final review comes forward with recommendations.

On plans to bring forward jobs for young people, I point the hon. Gentleman to recently announced interventions by the Secretary of State to provide £3,000 to small and medium-sized enterprises that hire apprentices and £2,000 to any employer who hires a young person who has been on universal credit for more than six months. This will make a significant difference and it is the right thing to do.

Too often, young people are written off as lacking ambition, when the reality is that they are lacking the opportunities for good work. More than 40% of young people not in education, employment or training have said that finding fulfilling work is their top priority. Despite that, in my area under the Scottish National party-run Renfrewshire council and the SNP-run Holyrood Government, employability services are being cut by 30%, failing too many of our young people. Can my hon. Friend set out what steps the Government are taking to work with the Scottish Government to protect vital employability services and ensure apprenticeship opportunities for young people in my area?

My hon. Friend knows that I met an employment support provider in her constituency recently, and I was grateful for her welcome. She is absolutely right to say that young people do not lack the ambition to find work. This is a failure of the state’s making, not a failure of young people. If she has specific concerns about cuts to employment support in her area, I would very much welcome a letter from her setting out those challenges, and I will raise those issues on her behalf.