Two New Work and Pensions Committee Inquiries

The Work and Pensions Committee launches an inquiry into employment opportunities for young people

• Inquiry: Employment opportunities for young people
• Work and Pensions Committee

Aim of the inquiry

The Committee considers whether current provision for young people is sufficient to enable their full access to and participation in the labour market and identify ways of improving this. This will focus on support in the transition from education to employment, the support offered to young people via Jobcentre Plus, and issues around progression and quality of work for young people.

Call for written submissions

The Committee invites written submissions addressing one or more of the following areas:

Services for young people

• To what extent does getting young people into work and supporting them in work require an approach distinct from that of other groups?
• What is the likely impact of the end of the Youth Contract on labour market prospects for young people who are NEET (not in education, employment or training), and is action required to mitigate this impact?
• Is current mainstream Jobcentre Plus provision adequate to meet the needs of all young people, including NEETs and unemployed graduates?
• What do employers look for from their younger employees and potential employees, and how can Jobcentre Plus support them in finding this?

Jobcentre Plus Support for Schools

• How effective is Jobcentre Plus Support for Schools likely to be in enhancing young people's career prospects?
• Are there any areas of potential tension between Jobcentre Plus advisors in schools and current school career advice provision, and if so, how could these be overcome?
• How can DWP ensure that schools engage with the initiative, and how should its impact be monitored?

Support beyond Jobcentre Plus

• How can Jobcentre Plus services for young people be more effectively integrated with other local services, especially around education and skills?
• What broader measures, especially those aimed at employers, should be Government prioritise to improve the employment rates of young people?

Longer-term labour market prospects

• How do changes in job quality and availability since the crisis affect young people? How is the decision to exempt young people from the National Living Wage affecting their experiences of employment?
• What is likely to be the impact of any forthcoming economic uncertainty on young people, and how should the Government best seek to protect them from this?

Submit your views through the Employment opportunities for young people inquiry page.

Deadline for written submissions is Monday 5 September 2016.

Inquiry background

Youth unemployment began rising sharply following the financial crisis, peaking at around one million in 2011/12. Since then it has dropped to similar levels as before the crisis, at around 600.000

UK unemployment rates (%)

Despite this, at 14.9% in 2015 (House of Commons Library, Briefing Paper, PDF 535KB), the youth unemployment rate remains significantly higher than the overall unemployment rate of 5.4%. The number of young people who are NEET (not in employment, education or training) has also returned to levels that are comparable to before the crisis. However, as of Q1 2016, 105.000 young people were long-term unemployed (out of work for twelve months or more), down 7.000 from the previous quarter, and 69.000 from the previous year. This represents 16.6% of all unemployed 16-24 year olds.

As such, although young people's employment rates have somewhat recovered since the crisis, there are still areas of concern.

For young people in work, increased job stability and tenure may also be having a negative impact on them at the start of their careers, creating promotion and progression blockages. These risk having a 'scarring' effect on their future employment prospects.

A number of recent and forthcoming developments will affect young people's experiences of the labour market, both in and out of work. These include:

• The end of Youth Contract provision
• The introduction of the Jobcentre Plus 'Support for Schools' initiative
• The expansion of apprenticeships in England (English Apprenticeships: Our 2020 Vision, PDF 1.25MB)
• Changes in young people's experiences of the labour market, including prospects for career advancement and exemption from the National Living Wage
• The impact of any forthcoming economic uncertainty related to the Brexit vote

Chair's comment

Frank Field MP, Chair of the Work and Pensions Committee, said:

"The transition between school and work can make or break a young person's job prospects. For those who struggle to find and keep their first job, every day brings with it the prospect of merely existing, rather than living a fulfilling life. I therefore hope the Committee will be able to gain substantial evidence on how best to prevent anybody failing through the cracks and drifting towards long-term unemployment before their adult life has even begun."

Committee Member, Mhairi Black MP, said:

"Many young people are struggling to transition into the workplace, and it is so important to assess the role of the Jobcentre in this situation. This is a many facetted issue, and I am hopeful that the Committee will be able to accrue the relevant evidence to address it, and prevent any young person falling into the trap of economic and social uncertainty that comes with being unemployed."

 Child maintenance inquiry launched

The Work and Pensions Committee launches an inquiry into the Child Maintenance Service (CMS) and its effectiveness in ensuring regular payments for children, and considers recommendations to improve the service overall.

• Inquiry: Child Maintenance Service
• Work and Pensions Committee

Call for written submissions

The Committee invites written submissions addressing the following points:

• How well is the CMS performing for children and parents? How could it be improved?
• What problems do parents face – both for the parent with care and the non-resident parent?
• Are levels of child maintenance set correctly?
• What powers does the CMS have and how effectively are they used? How effective is enforcement action?
• What will happen to CSA arrears or unresolved cases when parents move to the new CMS?
• How might the CMS deal with any weaknesses or loopholes in the old CSA system?
• Are there any opportunities for Government departments to work together to ensure regular payment?
• Is there any international evidence on ways of ensuring parents regularly contribute to their children’s maintenance payments? 

Submit your views through the Child Maintenance Service inquiry page.

Deadline for written submissions is Monday 5 September 2016.

Inquiry background

Separated families have several options for arranging child support. Some rely on statutory government-run schemes that assess, collect and make payments, while other families set up their own (family-based) arrangements or use the court system. The DWP introduced the statutory Child Maintenance Service (CMS) in July 2012 to arrange child support payments from one parent to another, replacing the Child Support Agency (CSA). The Department also introduced parental charges for parents wishing to use the statutory service.

New rules for calculating payments were brought in along with a new power to report child maintenance debtors to credit reference agencies. Legal action can be expensive, with the proportion of cases taken to court fallen by nearly three quarters since 2012-13 (See Commons questions 2862 and 2863, June 2015). At December 2015, arrears across the child support schemes were almost £4 billion (Client Funds Account 2014/15, Department for Work and Pensions, PDF 270KB).

Committee Comments

Frank Field MP, Chair of the Work and Pensions Committee, said:

"The current maintenance system appears to be failing parents in receiving regular payments, demonstrated through the level of outstanding of arrears, which stands at £4 billion. Some individuals described to us the importance of the courts if they were to get any justice at all. Our inquiry considers recommendations towards the current issues with the service faced by parents with care and non-resident parents."

Heidi Allen MP said:

"While many parents do pay what they owe, a group of my constituents drew to my attention concerns with receiving regular payments. In such cases, the Child Maintenance Service have a range of options for taking enforcement action, from contacting non-paying parents to legal enforcement, but the time to get results can be very lengthy. The fact that some cases rely on legal enforcement suggests that the system is not fully effective in ensuring regular and timely payments. Our inquiry plans to look at weaknesses in the old CSA system, particularly around self-employed parents, and assess whether the new CMS can deliver an improved outcome for parents and children"

 Steve McCabe, Committee Member, said:

"I am really concerned about the recent report from Gingerbread which revealed that there is millions of pounds missing in child maintenance payments, which is unlikely ever to be recovered as a result of the introduction of the Child Maintenance Service."

Committee Membership is as follows: 

Frank Field (Labour, Birkenhead) (Chair); Heidi Allen (Conservative, South Cambridgeshire); Mhairi Black (Scottish National Party, Paisley and Renfrewshire South); Ms Karen Buck, (Labour, Westminster North); Neil Coyle (Labour, (Bermondsey & Old Southwark); John Glen (Conservative, Salisbury); Richard Graham (Conservative, Gloucester); Craig Mackinlay (Conservative, South Thanet); Steve McCabe (Labour, Birmingham Selly Oak); Jeremy Quin (Conservative, Horsham); Craig Williams (Conservative, Cardiff North).