Latest Public Sector News

25.07.14

Coalition’s youth unemployment programme to end early

The coalition government’s programme to tackle youth unemployment across the country is to be wound up a month ahead of schedule, following claims that it has failed to meet its aims.

Championed by deputy prime minister Nick Clegg, the £1bn you contract incentive scheme was launched in 2012 with employers being offered a £2,275 government subsidy to allow 160,000 under 25s to be given a six-month "job start".

However, the Financial Times has reported that the DWP has written to companies to warn that no claims will be accepted for any placements that start after August 6 this year – a month earlier than planned.

Recent statistics show that by November last year wage-incentive payments had been made in respect of only just over 10,000 individuals. However, the government said the low take-up was a symptom of continued falls in youth unemployment – with the latest figures showing it went down by 141,000 in the last year.

A government spokeswoman said: “We now have record employment in this country, with the largest fall in youth unemployment since the 1980s.

“The Youth Contract has contributed to that by providing over 200,000 opportunities for young people, helping them to get the experience and training they need.

“As part of the government's long-term economic plan, we'll be re-investing the wage incentive money in other projects targeted at those young people who face the biggest challenges to getting into work, so everyone can share in the growing economy and improving jobs market.”

However, Labour’s shadow DWP secretary, Rachel Reeves MP, stated that the Youth Contract has been an abject failure from start to finish.

She added that ministers promised it would get every unemployed young person working or learning, but only a tiny fraction of Youth Contract employer wage incentives were ever used to get young people into work, and over 800,000 young people are still unemployed.

(Image: c. Liberal Democrats)

Tell us what you think – have your say below or email opinion@publicsectorexecutive.com

Comments

There are no comments. Why not be the first?

Add your comment

 

related

public sector executive tv

more videos >

last word

The importance of openness after Grenfell

The importance of openness after Grenfell

Following the recent Grenfell Tower tragedy, Lord Porter, chairman of the LGA, argues that if the public are going to have faith in the safety testing process then everything must be out in the open more > more last word articles >

public sector focus

View all News

comment

Support for councils following Grenfell

04/09/2017Support for councils following Grenfell

Ian Moore, CEO of the Fire Industry Association (FIA), discusses the wider ... more >
A quiet revolution

04/09/2017A quiet revolution

Dermot Ryan, programme director at NHS Digital for the Health and Social Ca... more >

interviews

‘The HSCN is the realisation of industry best practice’

30/06/2017‘The HSCN is the realisation of industry best practice’

Keith Smith, public sector business development manager at Virgin Media Bus... more >

the raven's daily blog

How do we deliver true social and economic value for the community?

18/09/2017How do we deliver true social and economic value for the community?

Five years on from the introduction of the Social Value Act, Alison Ramsey, frameworks co-ordinator at Scape Procure, reflects on the key questions that prompted the legislati... more >
read more blog posts from 'the raven' >

editor's comment

14/08/2017Time for reflection

A lot has happened since the last edition of PSE was published. In particular, the snap general election delivered an astounding result that many of the pollsters and political experts could not have predicted when Theresa May initially called for it back in April. Chris Painter, Professor Emeritus at Birmingham City University, provides a fascinating analysis of the campaign, and assesses the aftermath of the election on pages 26-28. It is a must-read article.  During the... read more >