Oral Answers to Questions Debate

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Department: HM Treasury

Oral Answers to Questions

Meg Hillier Excerpts
Tuesday 11th December 2012

(11 years, 5 months ago)

Commons Chamber
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Danny Alexander Portrait Danny Alexander
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Yes, I do agree. The fact that the job outcomes are more stretching than previous schemes before providers get paid and that they are paid only for results—not just for activity—of course means that it is harder for them to start with, but the fact that there have been 200,000 job entries under the scheme up to September 2012 speaks for itself.

Meg Hillier Portrait Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)
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8. What recent assessment he has made of the effect of the Government’s fiscal policies on the level of long-term youth unemployment.

Greg Clark Portrait The Financial Secretary to the Treasury (Greg Clark)
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I have made a recent assessment of the impact of fiscal policies on youth unemployment rates. With few exceptions, European countries with the highest deficits also tend to be the countries with the highest youth unemployment rates. In this country, a big increase in the deficit under the previous Government went hand in hand with a big increase in the rate of youth unemployment. Under this Government, the deficit is now coming down, and so is youth unemployment—including, as the hon. Lady knows, in her own constituency.

Meg Hillier Portrait Meg Hillier
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Overall in my constituency, the number of claimants on jobseeker’s allowance in October was the 22nd highest of all constituencies. Among 18 to 24-year-olds, the rate was 10.4%. That is far too high. My constituency has regular visits from the occupants of No. 10 and No. 11 Downing street to extol the virtues of Tech City, but what is the Treasury doing to make sure that my constituents are able to get any of the jobs created, especially when the Work programme is also failing them?

Greg Clark Portrait Greg Clark
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The hon. Lady was a Minister in the last Government, and she will know that in her own constituency there are fewer young unemployed people now than there were in the last year of the Government of whom she was a member. I am surprised that she has not taken the opportunity to refer to the fact that the rate of youth unemployment in Hackney South and Shoreditch has fallen by 20% over the last 12 months.