Thousands of unemployed young people across the North East could be stripped of benefits under tough plans in the Government’s Queen’s Speech.
David Cameron insisted the crackdown was designed to end youth unemployment, as he set out his plans in the House of Commons.
But Labour MPs said the plans effectively meant young people would be forced to work for as little as less than £2 an hour – payment far below the minimum wage.
The North East has the highest youth unemployment rate in England.
Office figures show 21.4 per cent of young people aged 18 to 24 are unemployed.
The figures cover people who are “economically active”, which means they are in a job or looking for work. Full-time students are not included.
This is a higher proportion than in any other part of England. It’s also higher than Scotland or Wales, and roughly equal to the Northern Ireland figure of 21.8 per cent.
By contrast, the unemployment rate for people aged 18 to 24 in the south east is 11.4 per cent. And in the West Midlands, it is 16.1 per cent.
Official figures also show that 4,000 people in the North East aged 18 to 24 have been claiming Jobseekers Allowance for six months or longer.
But under Government plans, anyone aged 21 or under will lose the right to this benefit – and be put on a new “youth allowance” instead.
They’ll get the same amount of money as before, up to £57.90 a week, but if they are unemployed for six months then they will be given compulsory community work such as making meals for the elderly or working for local charities – and they’ll lose the right to claim benefits if they refuse.
If they will have to work 30 hours a week as expected, that would be a payment of £1.93 for each hour worked, well below the minimum wage of £5.13 for people age 18 to 20 and £6.50 for those older.
The Government says it plans to prepare young people for work and will create 200,000 new apprenticeships in the North East.
And Conservatives point out that the number of people aged 18 to 24 in the North East actually in work has risen by 13,000 over the past year.
David Cameron told the House of Commons: “One of the most important things we can do is give young people the chance of an apprenticeship and the chance of work.
“What we have done is expand apprenticeships and uncapped university places, so that there is no cap on aspiration in our country.
“We now want to go further by saying that every young person should be either earning or learning.
“Leaving school, signing on, getting unemployment benefit, getting housing benefit and opting for a life out of work—that is no choice at all, and that is why we will legislate accordingly.”
And Conservative MP Guy Opperman, MP for Hexham, said:
“This Bill will provide assistance to young people to earn and learn, and give them the skills which they need to have a long term future in employment.
“We need to address the skills gap and using apprenticeships will really make a difference to do that.”
Labour Gateshead MP Ian Mearns said:
“If young people are expected to work in order to get benefits then they should be entitled to the minimum wage.
“To tell them to work for £2 an hour is ridiculous. We have legislation which says there is a minimum wage in this country and that should be the minimum level people can expect.”
Conservatives will face a battle over plans to stop people aged 18 to 21 claiming housing benefit – with Labour MPs and other critics warning it will put young people who are forced to leave home because of abuse in danger.
Source – Newcastle Evening Chronicle, 30 May 2015
Article reposted from AOL Money UK
Good Morning my darlings. I’m feeling a little less emotional about the election result (still angry though) and so I decided to look into what’s to come …
Few people predicted any one party could win outright but now the Conservatives have done just that.
Before today, the party manifestos were seen as starting points for coalition negotiations, but now that the Tories have won a small majority they will be able to implement their pledges.
So what were those pledges and how will they affect you? Let’s take a look…
The Tory manifesto was stuffed full of promises on tax, including raising the personal allowance to £12,500 and increasing the 40% tax threshold to £50,000. The threshold is currently £42,386, which means current higher-rate taxpayers could save a tidy sum.
A key Conservative pledge was on inheritance tax…
View original post 671 more words
Prime Minister David Cameron has been given an open invite to visit the region’s young unemployed to stop him labelling them benefits scroungers.
The Tory leader announced plans to ‘combat’ youth unemployment by stopping benefits after six months for those aged 18 to 21 to wean them off a life of ‘dependency’.
While it played well to the gallery at the Conservative party conference, it left young people at the sharp end angry at how it seems to portray them.
Katie McLaren, 21, graduated with a degree in Performing Arts three months ago from Northumbria University and has still to find work.
“I’m trying to get on the employment ladder, be an adult, but there aren’t a lot of work opportunities out there,” she said. “Believe me I’m trying.
“Why doesn’t he speak to the young unemployed to find out what the situation is like? I think there’s a lack of understanding between the south and the north as well as politicians with the people they are supposed to represent. If he wants to come up here he is more than welcome.”
The region has one of the worst jobless rates for young people in the UK, running at 25% or about one in four.
And the figure for all ages in the North East is about 10%, the worst in the UK by a considerable margin.
Neil Burke of Youth Focus North East, a charity which aims to improve the life of young people across the region, said: “There might be lots of jobs in London but there aren’t loads of jobs up here, as the figures show.”
Speaking about Mr Cameron’s proposal, he said: “What about young people who have come from vulnerable circumstances?
“They can be socially isolated and getting them out of the house to train them can take four months which could be great work. And then have them find work in two months?
“It’s a one-size fits all policy. Many might have been let down by the education system and haven’t left school with the skills to get a job and sometimes it can take more than six months to get them ready for work. It seems to me the six month figure has just been plucked out of the air.”
Under the plan, unemployed 18 to 21 year olds will be given six months to find work or training before their jobseekers allowance (JSA) is withdrawn, and replaced with a ‘Youth Allowance’ which would be set at the same level as JSA, £57.35.
This would be time-limited of six months, after which young people will have to take an apprenticeship, a traineeship or do community work – such as cleaning up local parks – to earn their benefits.
Young mum Amy Ormston, 22, from Gateshead dropped out of college to have daughter Mya. She is now training to become cabin crew.
She said: “I don’t agree with the plans to cut benefits at all. If it happened to me how would I be able to feed Mya?
“There aren’t jobs but there is plenty of voluntary work going round – how many of those lead to a permanent job?
“He is tarring young people with the same brush. Stigmatising them as if all we want to do is just to be on benefits.”
Lizzie Crowley of the Work Foundation, a not-for-profit organisation providing research on work, said similar schemes have been introduced in the US and Australia and have not been successful – unless the intention was to save money on benefits payments.
She said: “People have just left the system before the time period is up. It can lead to homelessness or relying on your parents even more. That’s people who have stable family relations.”
Katie said she has family to go back to in Hartlepool. However she added: “I don’t think that would be fair on them and I’d feel a failure if I had to.”
Source – Newcastle Evening Chronicle, 01 Oct 2014
A future Conservative government would reduce the benefit cap from £26,000 to £23,000 and force young unemployed people to work for their benefits, chancellor George Osborne has revealed.
He told the Mail on Sunday that lowering the controversial benefit cap would help fund three million new apprenticeships. Previous Tory attempts to lower the cap have been blocked by the Liberal Democrats.
The Tories believe such a move would be popular among voters calling for yet more cuts to welfare spending. But it will alarm charities and poverty campaigners, who argue that benefit claimants are being unfairly targeted for cuts and marginalised in British society.
“Our mission is not just to save the pounds here and there, we’re trying to change the welfare system so it doesn’t trap people in poverty and a culture of dependency. It is a tragedy for them and a waste for the country.
“We are saying you will receive an allowance but if you can’t find work after six months, you will have to work for the dole. They are difficult decisions but the right ones.”
Osborne also said that 18-21 year-olds would be prevented from claiming housing benefit.
“It is not acceptable for young people under the age of 21 to go straight from school and into a home paid for through housing benefit – benefit funded by other people who are working”, he said.
Mr Osborne claimed that before the introduction of the benefit cap “some families were receiving £100,000 a year in housing benefit”. An analysis by the respected fact-checking website FullFact in November 2012 found that only 70 households, out of a total of 4.5 million, were receiving over £1,000 per week in housing benefit a week in September 2010.
“Even this is likely to overstate the number claiming £100,000 per year however”, said FullFact, “as a family would need to claim over £1,900 per week to hit this total. Previous FoI responses from the Department have suggested around five families benefited by this amount.”
They added: “While the evidence suggests that there are a small number of Housing Benefit claims of more than £100,000 per year – perhaps around five – these cases are very much the exception rather than the rule.
“Focusing exclusively on these outliers without first putting them into context, where over 80% of claims are below £100 per week, could distort the debate around this important topic.”
Rachel Reeves, Labour’s shadow work and pensions secretary said:
“David Cameron’s Government is set to overspend by a staggering £13 billion on social security. And the number of working people claiming Housing Benefit is set to double by 2018/19 costing every UK household £488.
“Spending has risen because the Government has failed to tackle the increasing number of low wage jobs and their welfare policies, from Universal Credit to Personal Independence Payments, are in chaos.
“We must bring down social security spending and doing that requires a new approach to tackle the root causes of these costs directly. That’s why a Labour Government would make work pay by increasing the minimum wage, stop young people cycling in and out of welfare before they’re established in jobs and build more homes to tackle rising housing benefit spending.
“Alongside our plans to introduce a compulsory jobs guarantee to get the long term unemployed off benefits and into work, these measures will help control social security spending for the long term. All the Tories offer is announcements to hide the truth of rising welfare spending.”
> compulsory jobs guarantee = workfare. Different arseholes, but the same old shit.
Update: Since publishing this article it has been brought to our attention that a future Tory government would also scrap Jobseeker’s Allowance (JSA) for 18-21 year-olds. It would be replaced with a “youth allowance”, paid at the same level as JSA. In order to continue receiving payments after six months of being unemployed young people would be required to “work for their dole” on “community projects”. The idea of a youth allowance has already been proposed by the Labour Party.
Source – Welfare News Service, 28 Sept 2014