Member Article

Youth Contract is not enough to tackle unemployment

Government efforts to tackle youth unemployment are insufficient given the scale of the problem, say MPs.

A report from the Work and Pensions Select Committee suggests the £1bn Youth Contract is good start, but will not work on its own.

The Committee noted the scheme is limited to 16 to 17 year-old NEETs (not in education, employment or training), and that a broader eligibility would bring more benefit.

It also argued the maximum funding of £2,200 per young person may not be sufficient to provide effective support for the most disadvantaged.

Committee Chair Dame Anne Begg MP, said: “The Youth Contract is welcome but on its own it will not be enough to address the current unacceptably high level of youth unemployment.

“Young people need effective support from Government to counteract the disadvantage they have long suffered in the labour market but they also need a return to economic growth and a substantial increase in the number of new jobs.

“In particular, past experience shows that 160,000 wage incentives is a very ambitious target in the current economic climate. And 250,000 additional work experience placements for young people may also be unrealistic.”

Elsewhere in the report, the Committee recommended that Jobcentre Plus Work Experience placements should be focused on quality, not quantity, as unpaid work experience may be counter-productive for people who already have experience.

The transition from education to work was also a focus, as it was stated Professor Alison Wolf’s identification of the “churn” many young people face between educational courses and unemployment, must be addressed.

The Committee noted the coordination of the Youth Contract and policy was spread across at least five central government departments, as well as public, voluntary and private sector organisations, in a confusing and non-cost-effective setup.

Here, the report stated: “There is no shortage of youth employment services but they are poorly coordinated and neither employers nor young people know where to go to find quick and useful information.

“The Government needs to streamline delivery of employment, training and skills opportunities for young people. It should start by establishing and publicising a dedicated telephone helpline and online service where employers can go if they want to offer a job, work experience or training opportunity to a young person. Young people themselves need a similar efficient information service.”

This was posted in Bdaily's Members' News section by Tom Keighley .