By David Williams
21 December 2010
MPs have warned that jobless young people could miss out on the support they need to find work following the government’s decision to scrap a scheme aimed at tackling rising youth unemployment.
The £1bn Future Jobs Fund was created in April 2009 in response to rising youth unemployed caused by the recession. It had been scheduled to run until March 2012. However, coalition ministers announced in May that the scheme would be stopped a year early, saving £320m.
In a report issued this morning, the Commons work and pensions select committee expressed concerns that there would be a gap in assistance for young people out of work between March and June next year when the government’s new Work Programme begins.
Chair Anne Begg said that when ministers decided to cut the programme there was not enough evidence available determine whether it was cost-effective.
She said: ‘We are also concerned that the new Work Programme may not be fully available in all areas of the country from next June.’
‘Young people, especially those who may be lacking skills, experience and confidence, need appropriate and sometimes intensive support to find work, otherwise they risk falling into long-term unemployment.’
Begg called on the Department for Work and Pensions to undertake a robust and comprehensive evaluation of the FJF’s effectiveness, and to make the results public.
The committee’s report also recommended that the department ‘ensure proper transitional arrangements are in place’ between March and June next year.
Appraising the FJF, the report said that, although it fell behind its own targets, it still made a significant contribution in creating temporary jobs for young people. However, the committee also noted that the programme was relatively expensive and concluded that it was too early to say whether it succeeded in supporting people into permanent employment.
