24th May 2010

Responding to today’s government plans to cut youth jobs, Yvette Cooper said:
 
“These are shocking cuts in support for young people to get jobs at a time when unemployment is still rising. Over 40,000 youth jobs are being cut this year breaking pre - election promises by both the Tories and the Liberal Democrats to continue the Future Jobs Fund.
 
“At a time when the economy is still fragile, and young people are still being heavily hit, these cuts are short termist madness which could harm those young people’s chances for years to come.”
 
 
Background facts:

• The Tory-Lib Dem government says they will save £320m by cutting some employment programmes, including "ending further roll out of temporary jobs through the Young Person's Guarantee (Future Jobs Fund)" and removing recruitment subsidies from the Six Month Offer. http://www.hm-treasury.gov.uk/d/press_04_10.pdf page 3

• Future Jobs Fund jobs are real jobs at at least the minimum wage and at least six months long. The Labour government had promised and announced funding for 200,000 jobs through the Future Jobs Fund.

• 118,000 of the 200,000 jobs have been confirmed for individual organisations, with 80,000 more pledged, with bids and plans underway.  

• The government has not said how many jobs will be cut, but these proposals imply cutting 40,000 to 80,000 youth jobs this year alone, and many more to be cut next year. 

• Future Jobs Fund jobs are funded at £6,500 per job, although the net cost is lower due to savings on unemployment benefit or other programmes - meaning that well over 40,000 jobs would need to be cut this year to save £320m.

• On a pre-election visit to a Future Jobs Fund scheme in Liverpool, David Cameron said it was "a good scheme" and added "we've got to help people who are unemployed for a long time and social enterprises like this help. It demonstrates where giving more power and control to projects like these works" http://www.liverpooldailypost.co.uk/liverpool-news/regional-news/2010/03/31/david-cameron-pledges-support-for-liverpool-job-creation-schemes-for-long-term-unemployed-92534-26144284/ http://www.sen.org.uk/news/david-cameron-visits-liverpool-promote-social-enterprise-campaign 

• In a letter to ACEVO on 28 April 2010, Theresa May said: "The Conservative position on the Future Jobs Fund...has been misrepresented by certain groups in the media. We have no plans to change existing FJF commitments. However it is essential that this support delivers long term sustainable work for those who take up FJF opportunities. If elected we will review the operation or the Fund to ensure this is the case..."

• In a letter to ACEVO on 21 April 2010, Steve Webb said: "We have no plans to change or reduce existing government commitments to the Future Jobs Fund. We believe that more help is needed for young people, not less”

• In previous recessions under the Tories, youth unemployment continued to rise for years after the end of the recession. It had already begun to fall under Labour after this recession – as a result of the extra support including the Future Jobs Fund.

• When Labour left office, there were around 40% fewer young people signing on than under the Tories in the 1990s recession, and well over half of young people on JSA were coming off within three months - thanks to Labour's £5 billion investment in jobs, which the Tories opposed, including over 200,000 jobs under the Future Jobs Fund and a guarantee of a job, training or work-experience for all young people six months unemployed.

• The youth claimant count is currently 440,000 – a drop of 50,000 since October, reflecting the extra help for young people including the Future Jobs Fund. The number of young people who are ILO unemployed is currently 941,000.