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2012-09-19 05:15:39
The government's youth contract is not enough to tackle the scale of youth unemployment, a group of MPs has said.
The youth contract provides 1bn for a range of schemes aimed at getting young people into work.
The Work and Pensions Select Committee said the contract was "a good start" but alone would not be enough "to address the current unacceptably high level of youth unemployment".
Labour said the report showed the government should "change course fast".
The government's youth contract brings together 1bn of funding for a number of schemes, up until 2015, to help get young people into work.
'Eye-catching targets'
Measures include providing 160,000 employers with a "wage incentive" of 2,275 to take on an unemployed 18-24 year-olds, 250,000 work experience placements and additional support from Jobcentre Plus.
If all targets are met, the contract is expected to create an additional 430,000 work opportunities over the next three years.
Dame Anne Begg, chair of the committee, said she welcomed the contract, particularly the increased support from Jobcentre Plus advisers and the widening of work experience opportunities.
The committee also praised the creation of a scheme targeted at 16 and 17 year-olds who are not in education, employment or training - the majority of whom do not receive support from Jobcentre Plus because they are not eligible to claim Jobseekers Allowance.
Dame Anne said: "Some of the measures in the youth contract have been shown to be effective but they will only make a significant impact if all the targets are met.
"Our concern is that there is a real risk that the government will fall short of its more eye-catching targets.
"In particular, past experience shows that 160,000 wage incentives is a very ambitious target in the current economic climate.
"And 250,000 additional work experience placements for young people may also be unrealistic."
'Wake-up call'
The committee said the government needed to widen its criteria for the scheme for 16 and 17 year-olds - which is currently only open to those with no GCSEs.
On wage incentives, the committee said their impact would be "only at the margins" and the government should keep under review the amount it pays employers.
More money may be needed in areas where youth unemployment is particularly high and to encourage the recruitment of disabled people and ethnic minorities.
The committee called for the government to simplify access for employers to the numerous schemes by setting up a dedicated telephone helpline for those who want to offer a job, training or work experience to young people.
Labour's shadow work and pensions secretary Liam Byrne said: "This major cross-party report is crystal clear: the Tory-led government's plan for youth jobs is failing and we need to change course fast."
"This is now a very loud wake-up call, at a time when the country is in a double-dip recession made in Downing Street."
Ronan Dunne, chief executive of O2, said: "Today's report shows that the youth contract hasn't yet had the impact needed to tackle the level of UK youth unemployment.
"I believe that it's not only the businesses that have signed up to the youth contract who can act to help the one million unemployed young people, rather all businesses, big and small, have a role to play in supporting young people on their journey to work.
"This can be anything from offering quality work experience and apprenticeships through to mentoring."