Cabinet Minister Warns Of "Lifelong Cost" To Taxpayers If Youth Unemployment Isn't Addressed
3 min read
A cabinet minister has said failing to get young people into work could result in a “lifelong cost” for “them and for the taxpayer”, as the Government announced its plans for a new youth guarantee.
Liz Kendall, Secretary of State for Work and Pensions, spoke to PoliticsHome on a visit to Anfield prior to her speech at Labour Party conference.
On Wednesday she was part of an event for young people in Liverpool's stadum, where she gave more details about how the Government will implement its youth guarantee alongside business and charities to improve youth employment and education.
Government data has found that more than one in eight young people are not in education, employment or training. Statistics from the House of Commons found the unemployment rate for those between 16-24 years old rose from 13 per cent in 2023 to 14.2 per cent in 2024.
In an interview with PoliticsHome, Kendall warned of the cost to the British state and taxpayer if the government could not improve youth employment, education and training.
“I am under no illusions about the scale of the financial problems,” she told PoliticsHome. “Living standards haven't risen. We've had pathetic levels of growth, and yet we're still all paying higher taxes.
"I have no doubt that we can't afford not to do this, because if young people are out of work and don't have skills, that has a lifelong cost for them and for the taxpayer. So not acting is not an option.”
Kendall believed the state had to play a central role in reducing youth unemployment as well as private business.
“I believe that government has a massive role to play to decide we're going to tackle this, to set a target to drive these issues forward. But we can't deliver it without working with others.”
The cabinet minister added that clubs like Liverpool FC had a huge role to play, as ministers "can't reach" young people "like the badge of Liverpool can."
She said that while the project must be backed by the government nationally, cities such as Liverpool had a richer knowledge of what was best for their area to increase youth employment.
"Liverpool knows best for what's needed here. I mean, I don't know all the different areas, all the different issues, the different groups, but mayors and combined authorities, they do," Kendall added. "This needs to be backed by us nationally, but led locally."
Kendall also blamed the previous Conservative government for having “written people off” over the last 14 years, while also claiming that the problem of youth employment stretched back to the 80s and 90s.
The cost to the taxpayer of the number of working age and children on benefits has increased by more than £40 billion in 20 years, according to DWP data compiled by the Spectator.
Between 2004/05 and 2009/10 under New Labour this figure increased from £104.68 billion to £128.65 billion. The cost to the taxpayer rose to £131.67 billion in 2012/13 before steadily falling to £116.61 billion in 2019/20.
After the pandemic and national lockdowns, the cost of working age people and children on benefits rose again and now stands at £149.87 billion.
Youth unemployment nonetheless remains at a historically low level. However, the trends show that this has begun to increase over the last two years.
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