By Jaimie Kaffash
5 February 2010
Measures announced by local government minister Rosie Winterton to put councils at the heart of tackling youth unemployment have been criticised as being a ‘band aid’ to a larger problem and ‘lacking in substance’ by experts.
In a speech to the National Worklessness Forum yesterday, Winterton praised councils in deprived areas for their innovative methods in tackling unemployment through the government’s £1.5bn Working Neighbourhood Fund.
She said that the government had given the 61 eligible councils a further £40m because of the fund’s success. She highlighted efforts in Liverpool and Doncaster to reach out to the worst-affected residents.
The minister also announced the development of a set of best practice guides on reducing unemployment. These included information on working with job centres; using the Future Jobs Fund; and promoting skills and employment through procurement and apprenticeships.
‘We know we cannot tackle worklessness on our own, sitting in Whitehall. Councils know their areas and residents better than anyone and all need to play their part,’ Winterton said.
‘That’s why I’m announcing a series of measures today that will give councils the tools to develop innovative ways of tackling persistent worklessness, the people that are hardest to reach, to plug skills gaps, nurture enterprise and create jobs.’
But experts attacked the measures as ‘little more than band aids’.
‘It is great that the government is recognising the problem of youth unemployment, which can be so damaging,’ Patrick Nolan, chief economist at the Reform think-tank told Public Finance. ‘We’ve got to be careful – the key is creating the right jobs. What we need is for the private sector to grow, to be taking on new staff. The measures that the government are taking are little more than band aids in a way.
‘If you see this in the context of the increase in National Insurance – which will make it more expensive for businesses to take on staff – the package as a whole does not sit very well…. It all comes down to creating new jobs. Businesses need to feel confident in investing, knowing that tax rates aren’t going to go up, they won’t have to accommodate greater flexible working conditions – this all has to be looked at.’
Graeme Cooke, head of the Open Left group at the Demos think-tank, said that there wasn’t too much substance in Winterton’s announcement. He told PF that there must be more alignment through the various funding streams for tackling worklessness.
‘It seems to me that if the government is going to be giving lots of money for councils to create jobs through the Future Jobs Fund for the local unemployed, then local authorities should put up some of the money already given to them through the Working Neighbourhood Fund,’ he added.
5 February 2010
Measures announced by local government minister Rosie Winterton to put councils at the heart of tackling youth unemployment have been criticised as being a ‘band aid’ to a larger problem and ‘lacking in substance’ by experts.
In a speech to the National Worklessness Forum yesterday, Winterton praised councils in deprived areas for their innovative methods in tackling unemployment through the government’s £1.5bn Working Neighbourhood Fund.
She said that the government had given the 61 eligible councils a further £40m because of the fund’s success. She highlighted efforts in Liverpool and Doncaster to reach out to the worst-affected residents.
The minister also announced the development of a set of best practice guides on reducing unemployment. These included information on working with job centres; using the Future Jobs Fund; and promoting skills and employment through procurement and apprenticeships.
‘We know we cannot tackle worklessness on our own, sitting in Whitehall. Councils know their areas and residents better than anyone and all need to play their part,’ Winterton said.
‘That’s why I’m announcing a series of measures today that will give councils the tools to develop innovative ways of tackling persistent worklessness, the people that are hardest to reach, to plug skills gaps, nurture enterprise and create jobs.’
But experts attacked the measures as ‘little more than band aids’.
‘It is great that the government is recognising the problem of youth unemployment, which can be so damaging,’ Patrick Nolan, chief economist at the Reform think-tank told Public Finance. ‘We’ve got to be careful – the key is creating the right jobs. What we need is for the private sector to grow, to be taking on new staff. The measures that the government are taking are little more than band aids in a way.
‘If you see this in the context of the increase in National Insurance – which will make it more expensive for businesses to take on staff – the package as a whole does not sit very well…. It all comes down to creating new jobs. Businesses need to feel confident in investing, knowing that tax rates aren’t going to go up, they won’t have to accommodate greater flexible working conditions – this all has to be looked at.’
Graeme Cooke, head of the Open Left group at the Demos think-tank, said that there wasn’t too much substance in Winterton’s announcement. He told PF that there must be more alignment through the various funding streams for tackling worklessness.
‘It seems to me that if the government is going to be giving lots of money for councils to create jobs through the Future Jobs Fund for the local unemployed, then local authorities should put up some of the money already given to them through the Working Neighbourhood Fund,’ he added.
