The Conservatives have warned that youth unemployment in parts of England is worse than in Bulgaria and Slovenia, as pressure mounts on Labour to cut the cost of giving a young person a job. More than a fifth of 20-24-year-olds now claim out-of-work benefits in one in seven constituencies, raising fears that “Labour’s lost generation” will pay a lifelong price.
Conservative demands on National Insurance
The Tories are demanding that Labour cuts the National Insurance employers must pay, which was hiked by former Chancellor Rachel Reeves. They say Andy Burnham’s party must take “urgent action” in this month’s Budget to tackle the “youth jobs emergency”. The party warns that a third of 16-24-year-olds who are not in education are also not in work.
In London, the unemployment rate for 20-24-year-olds in the 12 months to March was 16.3%, and in the East Midlands it was 12.7%. This compares with 11.2% in Bulgaria and 10.3% in Slovenia last year.
Constituency-level data
The Tories are alarmed that in 23 constituencies one in four young people claim out-of-work benefits. These include Blackpool South (30.5%), Sheffield Brightside and Hillsborough (29.9%), Great Grimsby and Cleethorpes (29.7%), Kingston Upon Hull East (29.2%) and East Thanet (28.9%).
The party has calculated that in 40 constituencies the number of 20-24-year-olds claiming out-of-work benefits has “risen by over 20% since Labour took office”, with Edinburgh West (47.3% increase) and Beaconsfield (up 36.1%) among the worst affected.
Political responses
Helen Whately, the Shadow Work and Pensions Secretary, said: “Labour has led Britain into a youth jobs emergency. Their tax raids and red tape have destroyed jobs. Every day, the number of young people out of work grows – with taxpayers forced to foot the bill. We cannot allow an entire generation to grow up with no experience of work, consigned to a lifetime on benefits. Labour must act urgently… Otherwise Labour's lost generation will continue to pay the price.”
The Tories insist present levels are not just “economically unsustainable” but constitute a “moral crisis that requires tough love to solve”. They want the Government to “halve employer National Insurance for 21-24-year-olds” while also ending the “pipeline that allows young people to come out of school and straight onto benefits”.
Kemi Badenoch's party has accused Labour of delaying a major report by former health Secretary Alan Milburn into young people who are not in education, employment or training until after the Budget so ministers can put off the “tough decisions needed to address this crisis”.
A Labour spokesperson responded: “The Tories have some brass neck. The number of young people not in work, education or training rocketed by around a quarter of a million in their fading years in office, and they did nothing about it. This Labour government is investing £2.5billion to get more young people into jobs or training, we’re working with businesses to extend work opportunities, and we’re building a system that supports youths not just to find a job, but to build a better future. More reform will follow Alan Milburn’s review.”
