Youth Unemployment
Debate between Pat McFadden and Caroline Nokes(2 weeks, 1 day ago)
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Pat McFadden
In fact, we can hear them claiming it right now. But the truth is that the number of young people not in education, employment or training rose by 250,000 in the three years running up to the last election, and the Conservatives did precisely nothing about it. Youth unemployment has been rising since 2022, and youth employment never reached pre financial crash levels in any single year of the Conservatives’ 14 years in power. On top of that, the Conservatives kicked away the ladder of opportunity from young people when they presided over a shocking 40% fall in youth apprenticeship starts over the past decade.
The problem is long term and deep rooted. We will back young people with more youth apprenticeships, more chance of getting a job, and more help in overcoming the challenges they face. We have already announced a youth guarantee to help the young unemployed. It involves intensive work coaching, 300,000 work experience and training places, and subsidised work for long-term unemployed people aged 18 to 21. However, we will now go much further, with an explicitly pro young people package, aimed at helping them to learn and earn. From this summer, we will introduce hiring bonuses for businesses that hire a young person who has been out of work for six months. The bonus will be worth £3,000 per young person. There will also be bonuses of £2,000 for small and medium-sized businesses that hire young apprentices. Both bonuses can be combined if the young person hired has been out of work for six months or more. What a contrast with the Conservatives’ record on apprenticeships, which was to take opportunity away from young people—[Interruption.] They don’t like to hear it, but I am going to continue!
We are introducing new foundation apprenticeships in retail and hospitality, and new short courses in AI, electric vehicle charging point installation, electrical fitting and assembly, mechanical fitting and assembly, modular building, solar photovoltaic installation, and welding—the skills that young people need for the future. On top of that, the jobs guarantee, which we previously announced for the long-term unemployed, will be extended to those aged 22 to 24. Those young people will get six months of paid work, at 25 hours per week paid on minimum wage rates. Altogether, this will create 200,000 job and apprenticeship opportunities over the next three years.
This is our new deal for new times, offering new hope to the young people who are so often disparaged by the Conservatives as shirkers and scroungers. Our message is different: “We back you, we believe in you and we want you to succeed.” The package that I have announced is new investment of about £1 billion, and it comes on top of the funding that we announced at the Budget. Taken together, it is a package of support for young people worth about £2.5 billion. The existing exemption from employer national insurance contributions for workers under 21 will stay in place. This package is not just pro young people; it is pro business. I welcome the comments by the Federation of Small Businesses, which said that the provision is a “game-changer” and “a decisive step forward”, and rightly describes the package as “pro-jobs, pro-opportunities”. The package has also been welcomed by large employers such as Amazon, Kier Group and PwC, and the welcome goes beyond business. We know that a lot of young people face challenges in the labour market, and the chief executive of Mental Health UK, Brian Dow, said that the package
“will support young people to be ready for work and help organisations large and small to capitalise on the skills, talents and enthusiasm that young people have to offer.”
As well as the package, there is an urgent need to offer help to young people, given technological and demographic change. They need our help, and we cannot afford to lose their talent and energy. This is about not just young people, but their parents and grandparents. This is a generational challenge, because who does not want their child or grandchild to have a better chance in life? That is why investment in the young is a bond between the generations. It is an act of solidarity that is in the interests of the whole country, because if a young person has prolonged periods out of work, the scarring effects can stay with them for the rest of their life. A young person under the age of 25 on the health element of universal credit is now less likely to get a job than someone over 55 on the same benefit. We have to act to change that.
I am often asked, “So when will you do welfare reform?” Well, I tell the House that this is welfare reform. Putting work and opportunity at the heart of our system is the best reform we can make. Asking not just, “What are you entitled to?” but “How can we help you change your life?” is the change that the system needs. That view lies behind the changes that I am announcing in this package. I commend the statement to the House.
Madam Deputy Speaker (Caroline Nokes)
I call the shadow Secretary of State.
Pat McFadden
My hon. Friend says that young people deserve support; I believe that with the right support, young people want to work and to make the most of their life. He asked how people in his constituency would be helped. They could be helped through the hiring incentives that I have announced, and through the hiring bonuses that will allow small and medium-sized businesses to hire a young apprentice. The young unemployed in his constituency will be helped, because we are offering hope, ensuring that they get a chance, and offering the sense of pride, purpose and dignity that comes with having a job.
Madam Deputy Speaker (Caroline Nokes)
I call the Liberal Democrat spokesperson.
Steve Darling (Torbay) (LD)
The Secretary of State is correct to suggest that the Government inherited a crisis around youth unemployment. However, by introducing the hikes in national insurance contributions, the Government made that crisis into a catastrophe for young people, and supercharged the pressure on our youth across the United Kingdom. Rather than tackling what is now the root of the problem—the NIC hikes—these proposals are just papering over the cracks.
Young people’s childhoods are massively different from those that many of us experienced, especially hon. Members who grew up some years ago, so I pay tribute to the organisations that get young people to the right place, including Eat That Frog, Doorstep Arts, Sound Communities and South Devon college, who do incredible work. They help young people who have come through the pandemic, those who feel as though they are in a pressure cooker because of social media, which is gnawing away at their life, and who face a cost of living crisis.
The Liberal Democrats are concerned about an element of the Government’s policy: we do not understand why the Government are removing funding for apprenticeships for management. Surely managers are the people who support young people in their hour of need, as they go into work. Young people aspire to move into those positions eventually, so will the Secretary of State think again about the impact of the national insurance contributions hike on hospitality, retail and tourism industries in areas like Torbay?
I was interested to hear the Secretary of State speaking on the “Today” programme on Monday. The presenter challenged him by suggesting that the NIC hike had jacked up youth unemployment, and the Secretary of State appeared to agree with that. Finally, an article in The Times suggested that the Government are thinking about making young people second-class citizens through their changes to disability benefits; I would welcome comments from the Secretary of State about that.
Government Resilience Action Plan
Debate between Pat McFadden and Caroline Nokes(8 months, 3 weeks ago)
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Pat McFadden
I congratulate the hon. Member on his wonderful tartan tie, which has caught my eye today—he is the best-dressed man in the House. He is absolutely right about attacks on the health system. It is frankly outrageous that people out there would seek to disable parts of the NHS as a means of extortion, and it is really important that we do everything we can to defend the NHS and stop patients from being subject to delays in their treatment because of these outrageous attacks.
Madam Deputy Speaker (Caroline Nokes)
I thank the Chancellor of the Duchy of Lancaster for his statement this afternoon.
Plan for Change: Milestones for Mission-led Government
Debate between Pat McFadden and Caroline Nokes(1 year, 3 months ago)
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The Chancellor of the Duchy of Lancaster (Pat McFadden)
With permission, Madam Deputy Speaker, I will make a statement about the next phase of the Government’s programme.
In July we set out our legislative programme, in October we set out our financial plan, and today we are setting out our plan for change. When we were elected, we said that we would have five long-term missions for the country: to grow the economy, to build an NHS fit for the future, to break down the barriers to opportunity, to take back our streets, and to make the UK a clean energy superpower. These missions mark an important and fundamental break from the record of chaos that we saw under the previous Administration—the constant changes in policy that prevented the then Government from facing up to long-term problems, held people back and, worst of all, helped to spread the belief that politics and government could no longer deliver for people. In fact, by the end they had given up even trying.
We will never submit to the fatalism that says government cannot deliver change for people. We do not believe that living standards have to stagnate as they did in the last Parliament. We do not accept the lowest levels of satisfaction with the NHS ever recorded, which is what we inherited when we came to power. We do not believe that a tawdry surrender to Tory Back Benchers should be allowed to cut off the dream of home ownership for the next generation. We will not sit back and accept a situation in which young children are falling behind their peers even before they start school, damaging their opportunities for the rest of their lives.
A break with all that is more than a political choice. It is a national necessity, so today we turn the page on that record. We reject the hopelessness that it fostered, and we have set out milestones for each of our missions and the foundations that underpin them. We have already stabilised the public finances. We have announced £22 billion more for the NHS, and we are increasing the schools budget by more than £2 billion. We have rejected the plans that we inherited from the Conservatives to cut back on capital investment and on the country’s future; instead, we want to build the schools, build the hospitals, build the houses and build the transport infrastructure that the country needs—investments that the Conservatives now say they support, although they reject every means of raising the revenue to pay for them. That proves only one thing: they have given up any pretence of being the party of sound money, and given up on being a serious political party at all.
Our plan for change sets out key milestones for the country. The first is to raise living standards in every part of the United Kingdom, so that working people have more money in their pockets no matter where in the country they live. The second is to build 1.5 million homes and to fast-track planning decisions on at least 150 major infrastructure projects; that is more than in the last 14 years combined. The third is to tackle the hospital backlogs by meeting the NHS standard of patients waiting no longer than 18 weeks for elective treatment in England. The fourth is to provide a named police officer for every neighbourhood, and 13,000 additional officers, police community support officers and special constables in neighbourhood teams in England and Wales. The fifth is to secure home-grown energy while also protecting bill payers: we want to be on track for clean power by 2030. The sixth is to give children the best start in life by ensuring that a record percentage of five-year-olds in England are ready to learn when they start school.
Underpinning those milestones are the strong foundations that the country needs. Economic stability is the foundation for growth, following a Budget that restored stability to the public finances and put in place investment to move the country forward. We will reduce net migration from the record high level that we inherited from the previous Government, clear the asylum backlog and increase returns of people who do not have the right to be here —work that has already begun. We will also fulfil the Government’s first duty of protecting our people through strong national security. Those are the milestones in our “Plan for Change”. None of them is easy, but worthwhile change seldom is. To deliver them will require relentless focus and facing up to the trade-offs involved.
Governing is not just about what we want to do, but about how we want to do it, so we have to reform the state itself to deliver our goals. That is why we want value for money, and are cracking down on fraud and waste through the new covid corruption commissioner. That is why we will raise £6 billion by going after tax avoiders—unlike the Conservative party, we are putting in the money to make it happen. That is why the Chancellor demanded efficiency and productivity savings of 2% from each Government Department next year. That is why we want to get more people off welfare and into work. That is why we will tackle the delays and blocks in our planning system to make it faster to get things built.
The old debate was just about Government budgets. The new debate has to be about how those budgets are used, and about how people can be equipped with the right technology and the right systems to deliver, so we will ask the following questions each time. Is power being devolved enough? Is technology being used enough? Are we learning enough from those on the frontline? We will have more to say about reform of the state soon.
I know there may be scepticism from those who first accused us of being far too cautious and now accuse us of being far too ambitious, but stop and think about what would happen if we did not set such goals. Politics needs a change when people have lost faith in its capacity to deliver, and the Government system itself needs a change to focus on the goals that we have set.
If we had just carried on in the same old pattern, we would have too many children who are not ready to start school, with opportunity cut off within the first few years of their lives. We would carry on with huge NHS waiting lists, which hurt both our people and our economy. We would have more and more young people cut off from having a home of their own and asking what all their effort and hard work will ever lead to. We would continue with too many of our town centres being no-go zones for people after dark. We would still be at the mercy of dictators when it comes to energy prices. Perhaps most of all, we would have an economy like the one the Conservatives ran, in which living standards continue to stagnate, just as they did in the last Parliament. If we did that, the loss of faith would simply carry on.
It is not a matter of whether we should do this. We have to do this to stop the country falling behind, and to meet the challenges that we face. If we meet these goals, we will have a country where living standards are rising, more children are ready for school, fewer people are waiting in pain for NHS treatment, more people have the chance to have a home of their home, and our streets are safer because we have the community police we need. That is change worth having and change worth fighting for, and I commend this statement to the House.
Pat McFadden
I absolutely agree with my hon. Friend. When we came into office in 1997, we were also faced with an NHS that was in severe difficulty. Let me be clear with the House: meeting that target is extremely challenging, but we believe that by setting it and driving the system towards it, we can make real progress towards reducing waiting lists. What a contrast in terms of what the public felt. When we left office in 2010, the public satisfaction rates with the NHS were the highest ever recorded. When we came back into office in July, those satisfaction levels were the lowest ever recorded. That is what we are trying to turn around through the plan we have published today.
Sarah Olney (Richmond Park) (LD)
I thank the Chancellor of the Duchy of Lancaster for advance sight of the statement. This new Government have followed the disaster of the previous Conservative Administration. The Conservatives broke the NHS, they crashed the economy with the disastrous mini-Budget and they managed the staggering feat of delivering five Prime Ministers in six years. It should not exactly be a hard act to follow—and yet, too many people feel like this new Government are still not listening to them.
When my colleagues and I speak to our constituents, they simply cannot comprehend decisions such as the increase in national insurance, which will hurt jobs just as we need to get the economy going; the tax on family farms; or the utterly misguided removal of the winter fuel payment. The right hon. Gentleman will forgive me, therefore, if I approach today’s announcement with a degree of scepticism. New targets are all well and good, but people have heard lots of similar pledges and targets before. As they know all too well, without a proper plan for delivery, they fail. I hope the Government recognise that pursuing the targets at the expense of all the other things left broken by the Conservatives will not cut it. The British public will not be taken for fools.
On that point, I want to focus on the NHS. Yes, bringing down waiting lists for treatment is a crucial part of the picture, but doing so at the cost of neglecting A&E waits or the ability to see a GP is like robbing Peter to pay Paul. We know that to fix the crisis in the NHS we must also fix the crisis in our care system. Indeed, it is on fixing health and care and delivering on the issues that people care about most that we on the Liberal Democrat Benches will continue to hold the Government to account. When will we hear more detail about how the plan is to be delivered, and particularly, about spending allocations for the NHS to fix our hospitals and reduce those waiting lists?