Burnham: Youth unemployment ‘moral failure’

Prime Minister Andy Burnham and Chancellor of the Exchequer John Healey visit the Hare pub in Harlow as the government announces a 20 percent cut in business rates for pubs, clubs and live music venues.
More opportunities: PM vows to end ‘moral failure’ of NEETs crisis (Simon Dawson / No 10 Downing Str)

Prime Minister Andy Burnham has pledged to overhaul the welfare system to help young people into work, describing the number not in education, employment or training as a “moral failure”.

Writing in The Times, Burnham said almost one million 16 to 24-year-olds in the UK were not earning or learning and called for more support to help them into work.

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“This is an economic catastrophe and a moral failure. And it must change,” he said.

The Prime Minister promised a new approach to supporting young people, including guaranteed technical pathways, apprenticeships, work placements and mental health support, with welfare acting as a safety net rather than the first step.

More opportunities

“Benefits will become the backstop, not the starting point,” he added.

According to the Department for Work and Pensions, almost six in 10 young people classed as not in education, employment or training (NEET) had never had a job.

Meanwhile, hospitality businesses have already committed to creating more opportunities for young people.

Last week, Stonegate, Fuller’s and Mitchells & Butlers joined a Government-backed pledge to create 100,000 paid hospitality jobs for young people over the next three years.

The programme will target 18 to 24-year-olds who are NEET, offering paid work, training and work experience. It will also expand access to the Hospitality Skills Passport.

Targeted support

However, UKHospitality (UKH) warned the sector’s ability to create youth jobs was at risk without targeted support in the Budget on Wednesday 28 October, with chief executive Allen Simpson citing more than £5bn in additional costs over the past two years.

The trade body called for the employer National Insurance contributions (NICs) threshold for hospitality businesses to rise gradually to £10,000 by the end of Parliament.

It added the sector had lost 100,000 jobs in two years, accounting for 45% of UK job losses, and provided 31% of first jobs for 16 to 24-year-olds.

Pub operators have also questioned whether free apprenticeship training for eligible under-25s will be enough to boost recruitment.

While welcoming the scheme, they said funding training alone would not address wider employment costs, paperwork or the time needed to train and support staff.