Youth Employment and the Budget

A review by Laura-Jane Rawlings

As 12:30 approached I was hopeful that we might see some positive things in today’s budget that would help young people in the UK.  This government has talked about an aspirational nation since it came into power, yet we have seen careers education services take a battering, a raise in tuition fees and new Jobcentre sanctions.

This statement really did have some highlights;

The financial support for postgraduates under 30 is really welcome, we know with advancing technologies and progression in the science community having a skilled workforce is essential.  Although a university route is only part of a skilled workforce it is key that all young people should have the opportunity to take their study further.

Helping employers to recruit apprentices by removing the National Insurance contribution for under 25 year old apprentices is a big positive.  The cost of employing any member of staff is high, for SME’s and Micro businesses sometimes the most natural way for them to grow is to recruit apprentices and the barrier of employment costs can be a turn off.

The government wants to see a further 3 million apprentices; this is an ambitious target and I am cautious that we do not end up with low quality apprenticeship places in order to meet this target.  We have to ensure that all pathways for young people are of high quality and particularly that there are varying levels of apprenticeship with clear progression so that all young people can find a quality apprenticeship journey.

The news of the “Northern Powerhouse” is welcome, encouraging business growth in the North of England is certainly needed in order to help tackle the high levels of youth unemployment some areas in the North face.  Supporting the infrastructure will create jobs and training opportunities for young people and cannot come too soon.  We must encourage the education establishments to make the links with the various industries growing in the North so we can support the skill development of our young people relative to the needs of the local economy.

What was not spoken of in the budget but detailed in the full statement is a £20 million investment in careers education.  We understand the DfE under the Education Minister Nick Morgan MP had requested a budget from this statement to improve careers education.  I am really pleased to see that this has been followed through, the budget does not come close to the money that was previously ring-fenced for Connexions, careers and enterprise education and it will be interesting to see later on in December how the department plans to spend this resource.

Careers education has taken a hammering under this government and we know that a lack of careers support and work experience is one of the biggest barriers young people face.  The time is now to get our young people excited and inspired by the world of work and I hope to see more from this government on this agenda.

Also in the full statement is a new Jobcentre initiative for young people aged 18-24, as of October 2015 there will be a period of intensive activity and job search support for young people who are not in education, employment or training before claiming Universal Credit

My big concern remains around the sanctions for young people; pushing young people into low-paid jobs for a few hours to keep them from claiming benefits is not a solution.  We often see young people who are underemployed, or who avoid getting help from the Jobcentre because of the sanctioning.  We must develop the skills and create opportunities for young people so that they can find their own path and not force young people into situations that make the simple task of living into a dangerous game of survival.

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As experts on youth employment and co-founders of the Youth Employment Group, we are ideally placed to understand the complex landscape facing young people, employers and policy makers.