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Clegg's flagship youth unemployment scheme an abject failure, says Labour Clegg's flagship youth unemployment scheme an abject failure, says Labour
(about 2 hours later)
Labour has condemned the early closure of the coalition's £1bn youth unemployment scheme, branding the programme an "abject failure from start to finish". Labour has condemned the early closure of the coalition's flagship £1bn scheme to tackle youth unemployment, branding the whole programme an "abject failure from start to finish".
The Youth Contract, championed by the deputy prime minister, Nick Clegg, paid subsidies to companies for each 18- to 24-year-old they hired. The Youth Contract scheme, championed by Nick Clegg, the deputy prime minister, paid subsidies to companies for each young person hired between the ages of 18 and 24. The wider scheme – due to run from May 2012 until the general election – was aimed at helping half a million young people, with enough subsidies for 160,000.
The wider scheme was to help half a million young people, with enough subsidies for 160,000, and was to run for three years from May 2012 until the general election. But the programme has been criticised for handing out the subsidies to firms that would have employed young people anyway, and not helping them into long-term jobs. The most recent figures showed that by November last year only 10,000 wage incentives had been paid out. However, it has been criticised for handing out the subsidies to companies that would have employed young people anyway, and not helping them into longterm jobs. The most recent statistics showed that by November last year only 10,000 wage incentives had been paid out.
The scheme will now stop taking applications in August, a month earlier than planned, with the government saying it will use some of the unspent money on other projects to bring down unemployment instead.The scheme will now stop taking applications in August, a month earlier than planned, with the government saying it will use some of the unspent money on other projects to bring down unemployment instead.
Despite a jobless rate among 16- to 24-year-olds that is still several times the overall UK rate, the Department of Work and Pensions said there had been the largest fall in youth unemployment since the 1980s. Despite a jobless rate among 16- to 24-year-olds that is still several times the overall UK rate, the Department of Work and Pensions pointed out there has been "the largest fall in youth unemployment since the 1980s".
It added: "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. "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," the government said.
"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.""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."
The shadow work and pensions secretary, Rachel Reeves, said 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". However, the shadow work and pensions secretary, Rachel Reeves, said 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".
She added that the government should instead introduce Labour's compulsory jobs guarantee – a promise to get every young person a job. She said the government should instead introduce Labour's compulsory jobs guarantee – a promise to get every young person a job.