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

Parliament cannot solve homelessness through legislation alone

Parliament cannot solve homelessness through legislation alone

Cllr Michelle Lowe, deputy leader and cabinet member for housing and health at Sevenoaks District Council, argues that if the government is really serious about combating homelessness they will work more > more last word articles >

public sector focus

View all News

comment

Oxfordshire devolution will boost UK economy

21/04/2017Oxfordshire devolution will boost UK economy

Peter Sloman, chief executive of Oxford City Council, argues that pursuing ... more >
Clean growth and the role of UK infrastructure

21/04/2017Clean growth and the role of UK infrastructure

A renewal of the UK’s infrastructure – from telecommunications ... more >

interviews

New social care funding misses the point

13/04/2017New social care funding misses the point

Clive Betts MP, chair of the Communities and Local Government (CLG) Committ... more >

most read

Shared Services and Outsourcing Week

the raven's daily blog

Why opening up procurement matters to the UK public sector

22/03/2017Why opening up procurement matters to the UK public sector

Rob Levene, managing director of Bloom, explains why opening up procurement is important to the UK public sector.  Procuring products and services by the UK public s... more >
read more blog posts from 'the raven' >

editor's comment

11/04/2017A watershed moment in British politics

The government has now officially triggered Article 50, formally starting the process of Britain’s exit from the EU. How this will affect local government, the wider public sector and the Civil Service remains to be seen, but the likelihood of it being plain sailing with the enormity of the task ahead seems rather unlikely.  It is, therefore, quite appropriate that in this edition of PSE Professor Chris Painter reflects on the profound changes that have taken place in the... read more >