Young People and Work: Milburn Interim Report
The first instalment of the Milburn review has been well received on both sides of the House. As a member of the Work and Pensions Committee, I had the chance to ask Alan Milburn about it a few months ago. One of the things he said, which got a lot of press but has been misunderstood, is that we spend £25 on benefits for every £1 we spend on helping young people into work. Contrary to what some on the right have assumed, that emphatically does not mean that slashing benefits is the way to cure youth unemployment. For years under the Conservatives, jobcentres operated under a sanctions-based culture. That failed. Job hunting is difficult, and totally demoralising job hunters by distrusting their every move is not the way to coach them through their first interviews. In evidence to the Committee, young people described being made to feel like a “leech”. How does that help anyone? The demand for people to demonstrate that they have submitted large numbers of job applications like notches on a belt has been completely destructive. Local employers have disengaged in my constituency because they have been spammed with poorly targeted applications. We should not be so hasty to write off the current generation as a bunch of snowflakes. Rather, we should remember that the current level of nearly 1 million NEETs is less than the peak back in 2011, when we had 1.25 million. The remarkable fact is that 44% of NEETs are not claiming any kind of benefit at all. Surely, even the most zealous right-winger can see that that challenges the cliché of an out-of-control benefits culture. Success stems from intervention at an early age. When kids stop attending school, that is a powerful indicator of their likelihood of becoming NEETs later. In that context, the Government’s youth guarantee scheme will not do the trick. It only kicks in after 18 months of unemployment, when the damage is done. It is also not available to kids on benefits. This will not be a quick fix, but actions today will bring huge long-term rewards for the people who matter most: our children.