Cooper: Jobs, training and work experience for every young unemployed person at six months and everyone will be better off in work

15 December 2009

Over 100,000 new opportunities for young people will mean that everyone under 25 will be guaranteed a job, training or work experience after six months unemployment, announced Work and Pensions Secretary Yvette Cooper today.

Yvette Cooper also announced a guarantee that every person on benefits for at least six months, whatever their age, would be at least £40 per week better off when moving into work. This new back to work credit will guarantee work pays.

This is the next step in the reform of the welfare system to make sure work pays and help people off benefits and into jobs, reforms which are supported by major changes to Housing Benefit also published today.

The White Paper - Building Britain’s Recovery: Achieving Full Employment - sets out a £400m programme over the next 18 months, including £300m to tackle youth unemployment.

On top of the opportunities set out in the White Paper, which includes more help for those looking to start their own businesses, the government also announced further jobs in policing and transport earmarked for those struggling to find work.

Yvette Cooper said:

“In the 1980s youth unemployment continued to rise for four years after the recession ended. A generation of talent was wasted.  We are determined that must never happen again, so we will guarantee a job, training or work experience at six months for 18 to 24 year olds.

“And, because we believe that work is the best way out of poverty we are continuing with radical reform to the welfare system. This means that everyone - be they lone parents, carers or disabled people will get the support they need, not only to get work - but to stay in work.  We will also guarantee that people will be better off in a job than on benefits."

Ministers believe that unemployment and youth unemployment will continue to rise further in the New Year, but the Government intends is to work with businesses and employers to aim to get youth unemployment falling in the second half of next year.

The White Paper also sets out more help for older workers, professionals, lone parents and carers as part of a wide ranging package of support designed to help jobseekers.

Families will benefit as the Paper makes it clear that jobs should be high quality and offer the chance of progression and development, emphasising the importance of everyone whether in or out of work having the chance to improve their skills.

These proposals also mark the next steps on the Government’s benefit reform programme, which is dedicated to ensuring that almost everyone on benefits is at some point on the road back to work. 

People will get more support from Jobcentre Plus (JCP) as the Paper outlines a more personalised service for customers including piloting a new more flexible approach in four JCP districts: Gloucestershire, Swindon and Wiltshire; South-west Wales; Glasgow; and Greater Manchester.

A radical reform to Housing Benefit has also been published today offering more to help people move off of benefits and into work by getting rid of excessively high rent payments and keeping benefit payments stable as people take up a job for the first three months so they don’t need to worry about meeting their housing costs.

Alongside the White Paper, Ministers launched a cross-Government 16-24 participation strategy, Investing in Potential, setting out what the Government is doing to maximise the number of young people aged 16 to 24 in education, training and employment. Including a special financial incentive to enable employers to take on 200 apprentices in the Schools and Children’s Workforce and a total of £12.5million for up to 5,000 ‘golden hellos’ of £2,500 to encourage employers to take on new 16 and 17 year old apprentices.

Iain Wright, Minister for 14-19 Reform said:

“Investing in young people during the economic downturn is a vital commitment to ensure that the tough economic climate does not ruin the prospects of a generation of young people. We have announced an additional £202m, which together with additional funding secured through Budget 2009, will fund an extra 142,500 learners in 2010-11 through the September Guarantee.

“Apprenticeships are a key route to building the national skills base and a fantastic way for young people to progress in the workplace and they make good business sense. Thousands of employers are already taking on apprentices – but it is right that we help make it easier for them.“

Kevin Brennan, Minister for Further Education, Skills and Apprenticeships said:

“We must invest for growth, and that means investing in our young people. That is why this Government is expanding apprenticeships, increasing the number of university places, and is making sure that young unemployed people get the skills they need to get work and get on at work.

The White Paper £400m package is funded by savings because unemployment is lower than expected in this year’s Budget.

Notes to Editors:

1. Today’s White Paper is published online at: www.dwp.gov.uk/buildingbritainsrecovery

2. The White Paper measures announced today include:

Help now for people who have lost their jobs:

• A guarantee of a job, training or work experience after six months unemployment for every young person
• Day one help for unemployed people to set up their own business, including a £50 a week self-employment credit for people who have been unemployed for three months while they get started
• Intensive, specialist help for unemployed professionals and people over 50

Measures to get people off benefits and into work:

• A Better Off In Work Guarantee for everyone on benefits for six months to make sure they are at least £40 per week better off in a job, through a new Back to Work credit
• Extending expectations to look for work to partners of benefit claimants
• Making it compulsory for young unemployed people to take up the job, training or work experience before they reach ten months of unemployment
• Ensuring that Housing Benefit incentivises work by offering a Transition into Work payment that maintains the benefit at the out of work rate for a set period of time – making the transition smoother and simpler.

A blueprint to fulfilling employment:

• Family Friendly Working Hours Taskforce with leading employers to make recommendations on making work flexible for parents and increasing the availability of part-time work
• Consultation on proposals to help carers balance work with their responsibilities including leave for hospital visits, or to care for someone with a terminal illness

3. The Housing Benefit consultation paper is published here: http://www.dwp.gov.uk/supportingpeopleintowork

4. As well as the opportunities outlined in the White Paper, Government is today also announcing:

• That the Metropolitan Police will be bidding for about 500 jobs for young people and other claimants in unemployment hotspot areas through the Future Jobs Fund. Their role will be to enhance and support the delivery of the Policing Pledge, and ACPO will encourage other police services to follow suit;
• That Sustrans are currently working closely with the Department for Transport and partners in order create up to 288 jobs for young people on the national cycle network;
• That DWP has committed to offer 750 apprenticeships by March 2011.  We are aiming for young people to fill at least half these places. We have pledged 100 internships for graduates and have already filled 32 places.