Young People not in Work, Education or Training

Question

Asked by

To ask His Majesty’s Government what action they are taking to reduce the level of young people not in work, education or training.

My Lords, the Government are investing £820 million over the spending review to help young people earn or learn through the youth guarantee. This includes a job guarantee, in which every eligible 18 to 21 year-old who has been on universal credit and looking for work for 18 months will be guaranteed six months’ paid work. In addition, we have announced £725 million for the growth and skills levy to support apprenticeships for young people, alongside reforms to simplify the apprenticeship system and make it more efficient.

My Lords, I welcome what my noble friend the Minister has just explained, but does she agree that nearly 1 million people not being in work, education or training—rising remorselessly under the last Government—is terrible for them and for taxpayers? The longer people are out of work, the more costly it is to prepare them for work. The media and right-wing clamour for short-term cuts in welfare is for the birds, frankly. Labour’s hugely successful 1997 new deal for young people programme helped more than its targeted 250,000 young people to move off welfare into employment, costing £668 million or up to £8,000 per person. However, national income grew by at least £200 million annually—so, short-term costs for long-term savings. Surely, that should be our policy today?

I thank my noble friend for that question and also for his history of tackling this issue in past Labour Governments. I fully agree with him that having nearly 1 million young people not in work, education or training is not only bad for those young people but also very bad for the economy. That is why we have today announced further detail on the policy measures underpinning the youth guarantee, to which this Government have committed £820 million over the next three years. For young people on UC, we are introducing a new youth guarantee gateway session and follow-up support, which will be offered to nearly 900,000 16 to 24 year-olds in jobcentres over the next three years. We are expanding youth hubs to over 360 locations, creating around 300,000 opportunities for young people to gain workplace experience and training. We are also fully funding apprenticeship training costs for all eligible 16 to 24 year-olds, by removing the need for non-levy-paying employers to co-fund these learners; that is alongside the job placement for 18 to 21 year-olds that I have already talked about. That is the way we will turn around the scandal of nearly 1 million young people neither earning nor learning, with all the damage that creates for them and the economy.

My Lords, I thank the Minister for visiting two university technical colleges, where she saw colleges which had a NEET unemployment rate of under 2%, compared to the rate of a mainstream school of 13.6%, which is disgraceful and unacceptable. As no new colleges or schools will be built in the next five years, the only way that those in school in communities that have an industrial heritage will be able to study a practical, technical education is to have a sleeve of UTCs from 14 to 18. The Minister knows that we produce 25% apprentices and 50% STEM graduates. That is our contribution to ensuring that, by the time of the next election, youth unemployment will not exceed what it is today.

I always enjoy my visits to UTCs and of course my conversations with the noble Lord as well. UTCs are doing a very good job in providing technical education which then leads on to apprenticeships, and so are other schools as well. At the heart of our post-16 White Paper was that we provide the pathways, through the new V-levels, T-levels and apprenticeships, for young people to get the skills they need to make a success of their lives.

My Lords, the Minister will agree that, after the 1948 Education Act was introduced, there was an unspoken contract between the state and parents that the state would provide education for every child and that parents, on the other hand, had an obligation to get their child to school every day, unless there was good reason for it not to happen. The difficulty about the young people not in education, work or training today is that this behaviour starts very early in a child’s career. Does the Minister have any thoughts about how we can restore the contract between the state and parents to get their children to school?

The noble Lord makes an important point. It is absolutely the case that children who are absent for periods of time, or who are in alternative provision by virtue of behavioural needs, are more likely not to be in education, employment or training. That is why, as part of this plan, we will have a particular focus on those children, to identify much earlier who is likely not to be able to find a college place or job, and to intervene at that point to prevent them becoming NEET in the first place.

My Lords, I welcome the Minister’s comments, but this is very much a top-down approach to getting young people back into work. Can she give further assurance on how the Government will encourage tradespeople—the plumbers, electricians, brickies and others—to take on people as apprentices and trainees? This starts at the bottom. This does not start with all the courses that young people can do part-time; they have to be employed by a plumber, a builder or an electrician. What are the Government doing about it?

I am sure that the noble Lord will therefore welcome the announcement that we also made today of fully funding small and medium-sized businesses to take on apprentices. These are the businesses that are more likely to take on young people, including disadvantaged young people, and they are being supported by this Government. That will help to turn around the 40% decline in young people starting apprenticeships over the past 10 years.

My Lords, does the Minister accept that the most effective way to reduce the number of young people who are NEET is to secure stronger economic growth, giving employers the confidence, incentive and capacity to hire? Furthermore, under Labour’s proposed new youth guarantee, which is very welcome, how will the Government ensure that young people are matched to sectors for which they are genuinely suited, so that employers are not left exasperated by placements that break down almost immediately due to poor alignment?

I am very glad to hear the noble Baroness’s recognition of the importance of the youth guarantee announcements that we have been making today. We also announced the first six areas in which we will work with intermediaries, and directly with employers, to find those placements. An important element of the job guarantee will be the additional support that we can place around young people, who, by virtue of having been unemployed for 18 months, will undoubtedly need that additional support, including identifying where their talents lie so that they can then be used to the max.

My Lords, care-experienced young people are particularly at risk of being not in work, education or training. Has the Minister taken note of the support that universities, such as Nottingham Trent University, provide to care leavers in admissions, finance and transition, while also securing affordable, suitable and stable accommodation for them and estranged young people? What assessment have His Majesty’s Government made of the additional support that care leavers need to stay in education? Can the Government ensure that this kind of specific support is available more consistently across universities and for apprenticeships too?

I hope I can reassure the right reverend Prelate about that. First, care-experienced young people are a key part of the group for whom universities have responsibility through their access and participation plans, and the right reverend Prelate identified some good examples of where universities are doing that. In addition, those young people receive additional bursaries to go to university in the first place. If they undertake an apprenticeship, the employer receives additional money to support them with that. On their interactions with the benefit system, employment and education, the Department for Work and Pensions provides additional support to ensure that these young people get the chances later in life that they have not necessarily had earlier on.