For too many young people, starting out in life feels tougher than ever. Latest figures show youth unemployment in Britain has increased to 16.1 per cent. Everyone will be familiar with graduates who are completing dozens of job applications without success, or even a response. Getting on for three quarters of a million young people with degrees are on out of work benefits, rather than enjoying the higher paid jobs they planned and worked for. Many of those in jobs are struggling to save to buy their first home.
Little wonder young people feel they are getting a raw deal and parents are worried their children will have a better life than them. The Bank of England and others have pointed out what is obvious – the Chancellor’s decision to put taxes on jobs up has led to fewer jobs and this worrying situation. But that is not inevitable and I’m in politics to help improve people’s lives, not to be a commentator.
That means coming up with policies to change things which is why the Conservatives New Deal for Young People is all about helping to restore fairness and support aspiration and those determined to make the best of their talents.
To help build up savings for a deposit for a new home or to build up a nest egg, we would introduce a £5,000 tax cut when people start earning. Instead of that money going to pay National Insurance to the government it would go into a savings account. By doing this, young people would get practical help and reward those doing the right thing.
It is also important to act on student debt. Graduates are seeing interest on loans taken out from 2012-2023 growing month by month even as they make repayments. They feel trapped on a debt treadmill due to the current 3 per cent charged above inflation. The Coalition government introduced these changes and it has not worked as intended so it needs to be fixed.
Under pressure because of our policy, it looks as if the Labour government will now make changes to loans. This would only come after the Chancellor made things worse by freezing the repayment threshold dragging more of a young person's income into the 9 per cent repayment rate.
Finally, while university is a great option for many young people, there is huge value in increasing the number of apprenticeships. Hundreds of people attended the careers and apprenticeship event in Lynn last month. Over 50 employers were there to promote the wide range of opportunities. To do more the Conservatives would introduce an Apprenticeship Guarantee and lift the cap on funding for apprenticeships. This could see 100,000 more young people a year getting the benefits of earning and learning.
To fund these plans we would redirect money from low value degree courses which saddle students with debt but don’t deliver the well-paid jobs they expected.
Through our Conservative New Deal for Young People we are setting out practical help for young people and giving them a chance to succeed. We are on the side of people who want to get on and realise their potential. That means supporting employers to create more opportunities for skilled jobs, easing the burden on people starting their careers, and helping people to save for their future.
On Tuesday, the Chancellor will be in Parliament setting out the latest forecasts for growth and inflation. She could decide to change course and act to help young people, to reverse her damaging jobs tax, and to get Britain working again. The ball is in her court.
