Protection of the Lowest Paid?
With the Conservative annual conference in Manchester now at an official close, it is an ideal time to try and take stock of some of those messages which are likely to have a direct impact on young people, whether that be immediate or if the effect may be in the coming years.
In a keynote speech Boris Johnson, current Mayor of London and MP, expressed his support for the lowest paid, indicating “we must ensure that as we reform welfare and we cut taxes that we protect the hardest working and lowest paid.” Seen as a potential future leader of the party itself, some may see this as a word of encouragement for many young people on Zero Hour Contracts and often in insecure roles.
However, the impending changes to Tax Credits are not likely to be of great reassurance to many families and young people who are reliant on the extra boost to their monthly wages. Government plans to introduce the ‘National Living Wage’ (NLW) at £9 per hour by 2020, which they hope will be the replacement of welfare handouts, are likely to prove insufficient to curb the human cost of these changes. An investigation by the BBC revealed there are plans by government ministers to prevent young people to claim any benefits after they reach their 18th birthday,
Current targets are to cut £12 billion from the social security budget over this Parliament, further information on other areas of welfare support reductions are yet to be announced.
From his speech at the climax of the conference, Prime Minister David Cameron committed to “tackle some deep social problems…the scourge of poverty.” While this was seen as a unique statement by a Conservative leader to make, it indicates some intention to look at those challenges where many young people are victims themselves, in particular those who live in families affected by poverty. A report by the Resolution Foundation found that 300,000 more children will fall into this category by 2020.
For many of these important reforms though, young people under 25 are unlikely to feel much of the benefit in their own pockets. YEUK has responded to comments made by Minister Matthew Hancock on how young people “are not as productive, on average.” This statement, made in relation to the first jobs that young people have, is an unhelpful generalisation, where already the new NLW will not include people under this age. The issue of identifying strategies to address stagnant youth unemployment itself was not featured highly on the agenda.
It is, on the whole, a difficult package which young people will be contending with over the coming years. The current generation will need an urgent solution if they are to end their reliance on welfare, many who have children themselves or living away from their family, and have a wage which will provide them with the means to have a chance of making a living.
