How Labour would solve the youth unemployment crisis

The government's approach has utterly failed. We need a revolution in the way businesses, ministers and schools work together to get young people into work.

Today, the government finally admitted the truth. Its Youth Contract has utterly failed to get our young people back to work. The flagship scheme is now on course to miss its target by more than 92% - no wonder there are still almost a million young people out of work. The benefits bill for young people is now more than £3.6bn a year.

Today, Labour says we simply can’t go on like this. The system is broken and its needs to change, and one of those changes has to be a revolution in the way small business, government and schools work together to get our teenagers job-ready. That’s the conclusion of a radical report by Labour’s Youth Jobs Taskforce, led by Alan Buckle, deputy chairman of KPMG, which we publish today.

We asked Alan to spend six months talking to business about just what they can do to help tackle Britain’s youth unemployment crisis. We found some stark conclusions. British business is ashamed of the UK's sky-high youth unemployment – and champing at the bit to help – but all too often the system is getting in the way.

Look at Westfield’s work in east London to make sure Newham residents were first in line for work at the new retail park. Look at the National Grid’s programme to employ young ex-offenders. It’s a scheme that’s helped over 2,000 young people get a job. And look at the way that Labour councils like Liverpool, Sheffield and Manchester are creating Apprenticeship Agencies to forge a new partnership with small business to get young people onto the first rung of the careers ladder.

Businesses small and large want to join forces in tackling this crisis. But the government is letting them down. Our report finds that Britain’s small businesses have all but given up on the Work Programme and the Youth Contract which are respectively, abysmal and anonymous. Even Nick Clegg admits the system isn’t working.

But what the report exposes is that the problem now runs much deeper. Careers services have become all but extinct and young people now lack any independent advice on what skills to develop to land a local job and a local career.

The world of work is changing all the time, yet our young people have no guarantee of independent careers education and guidance at school, and the government has scrapped the right to work experience. No wonder six in ten firms say school and college leavers have not developed the self-management skills they need for work. Education and work are just too far apart and the result is a situation where we have nearly a million young people desperate for work at the same time as  business is reporting skills shortages that are getting worse not better. We can’t go on like this. Our report suggests some big changes.

First, we have to find a new way to harness small business. According to the Federation of Small Businesses, nine out of ten unemployed or inactive people who move into jobs do so with small businesses. So we have to revolutionise the way apprenticeships work for SMEs. Liverpool, Leeds and Sheffield are creating apprenticeship training agencies to make it easy for an SME to say 'yes' to a young apprentice.

Second, it means exploring how small business, government and schools can come together to rebuild Britain’s careers service. Labour pioneers like Manchester City Council are piloting UCAS-style clearing houses for apprenticeships to help small businesses find the recruits they need.

Third, we should look at opening up access to job outcome data for schools, so parents can get a much better idea of how well local schools are preparing their children for the world of work.

Fourth, we have to multiply the ways we bring businesses and schools closer together. At the best primary schools today, pupils are offered 'work discovery' to inspire them about the world of work. That’s especially important for opening male-dominated professions, like engineering, to women. For older pupils, employers should accredit rigorous vocational qualifications as part of our Tech Bacc alongside a work placement. And why not encourage more business people to sit on governing boards? We would give all schools the freedom to innovate with the national curriculum, so they can work with local businesses to tailor courses for local labour market.

Finally, we need to look into ensuring that young people leave school with a plan for their future careers, whether that’s a university, apprenticeship or employment offer. No one should feel undersupported when they move into the working world.

For three years now, this government’s policy has been one effort after another to divide and rule. To find one 'welfare dividing line' after another. When did we ever achieve anything by turning on each other? We have only ever achieved great things when we’ve pulled together. That’s what needs to happen now. We can end the crisis of youth unemployment. Business is up for it. Schools and colleges are up for it. We’re up for it. We just need to get the Conservative Party out the way.

Liam Byrne is shadow work and pensions secretary; Stephen Twigg is shadow education secretary

Two youths sit on a bench in Corby, Northamptonshire. Photograph: Getty Images.

Liam Byrne is shadow work and pensions secretary; Stephen Twigg is shadow education secretary

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To heal Britain’s cracks, it’s time for us northern graduates in London to return home

Isn’t it time for people like me, who’ve had privileges and experiences not open to everyone, to start heading back to our local communities, rather than reinforcing London’s suffocating dominance?

I’m from Warrington. The least cultured town in the UK. My town.

I moved to London almost exactly five years ago. Not because I particularly wanted to. Not because I wanted to depart the raucous northern town that I still call home. Because it was my only choice, really. I’d done my stint in the call centres and had some fun. But that couldn’t, surely, be my lot?

After university, I’d already started feeling a little weird and out of place back in Wazza. There were fewer and fewer people who didn’t look at me like I’d just fallen off a futuristic space flight that’d given me a different accent and lofty ideals.

Of course, that’s because most people like me had already skipped town without looking back and were all in the capital trying to strike beyond the ordinary.

The young, the cities, the metropolitan elite are still reeling after last week’s vote and wondering how people, half of our people, have got it so horribly wrong. We’re different, divided, done for.  

One thing I’ve clung onto while I’ve been in London is the fact that I’m from Warrington and proud. It might not be a cultured town, but it’s my town.

But I wasn’t proud of the outcome of the EU referendum that saw my town vote 54.3 per cent to 45.7 per cent to leave.

To be fair, even in my new “home” borough of Hackney, east London, the place with the third-largest Remain vote, one in five people voted for Brexit.

Yes, in one of London’s hottest and most international neighbourhoods, there are quite a lot of people who don’t feel like they’re being taken along to the discotheque.

Perversely, it was the poorest places in the UK that voted in largest numbers to leave the EU – that’s the same EU that provides big chunks of funding to try to save those local economies from ruin.

In many ways, of course, I understand the feelings of those people back in the place I still sometimes think of as home.

Compared to many suffering places in the UK, Warrington is a “boom town” and was one of the only places that grew during the last recession.

It’s a hub for telecoms and logistics companies, because, ironically, its good transport links make it an easy place to leave.

But there are many people who aren’t “living the dream” and, like anywhere else, they aren’t immune from the newspaper headlines that penetrate our brains with stories of strivers and scroungers.

Warrington is one of the whitest places in the UK, and I’m sure, to many locals, that means those immigrants are only a few towns away. There’s already a Polski sklep or two. And a few foreign taxi drivers. Those enterprising bastards.

We have never seriously addressed the economic imbalance in our economy. The gaping north-south divide. The post-industrial problem that politicians in Westminster have handily ignored, allowing the gap to be filled by those who find it quick and easy to blame immigrants.

When schemes like HS2, which is plotted to smash right through the place I grew up, are pushed against all of the evidence, instead of a much-needed, intercity Leeds to Liverpool investment to replace the two-carriage hourly service, it’s like positively sticking two fingers up to the north.

But I am also a big problem. People like me, who get educated and quickly head off to London when things aren’t going our way. We invested in ourselves, sometimes at state expense, and never really thought about putting that back into the places where we grew up.

There weren’t the right opportunities back home and that still stands. But, rather than doing something about that, people like me lazily joined the gravy train for London and now we’re surprised we feel more kinship with a 20-something from Norway than we do with someone who we used to knock on for when we should have been at school.

That’s not to suggest that our experiences in the capital – or mine at least – haven’t made us a thousand, million times better. 

I’ve met people who’ve lived lives I would never have known and I’m a profoundly better person for having the chance to meet people who aren’t just like me. But to take that view back home is increasingly like translating a message to someone from an entirely different world.

“You know, it’s only because you live in a country like this that a woman like you is allowed to even say things like that,” assured one of my dad’s friends down at the British Legion after we’d had a beer, and an argument or two.

Too right, pal. We live in what we all like to think is an open and tolerant and progressive society. And you’re now saying I shouldn’t use that right to call you out for your ignorance?

We’re both Warringtonians, English, British and European but I can increasingly find more agreement with a woman from Senegal who’s working in tech than I can with you.

It’s absolutely no secret that London has drained brains from the rest of the country, and even the rest of the world, to power its knowledge economy.

It’s a special place, but we have to see that there are many people clamouring for jobs they are far too qualified for, with no hope of saving for a home of their own, at the expense of the places they call home.

It’s been suggested in the past that London becomes its own city-state, now Londoners are petitioning to leave the UK.

But isn’t it time for people like me, who’ve had privileges and experiences not open to everyone, to start heading back to our local communities, rather than reinforcing London’s suffocating dominance?

We can expect local governments to do more with less, but when will we accept we need people power back in places like Warrington if we want to change the story to one of hope?

If this sounds like a patronising plan to parachute the north London intelligentsia into northern communities to ensure they don’t make the same mistake twice... Get fucked, as they say in Warrington.

It was Warrington that raised me. It’s time I gave something back.

Kirsty Styles is editor of the New Statesman's B2B tech site, NS Tech.