Getting young lives back on track

Nick Clegg unveiled a pioneering scheme this week to get 16- and 17-year-olds who are out of work and not in education, earning or learning again.

As the next part of the Deputy Prime Minister’s £1bn Youth Contract, for the first time funding will be targeted to this group of teenagers through tailored support on a payment-by-results system.

Help will focus on at least 55,000 young people – those 16- and 17-year-old NEETs (Not in Education, Employment or Training) with no GCSEs at A* – C at the highest risk

of long-term disengagement. In England, the government is making £126m of new money available to give teenagers opportunities to train, work and get their lives on track.

Charities and businesses with expertise in supporting young people are being invited to bid for contracts worth up to £2,200 for every young person they help. Support will be tailored to suit individuals’ needs, and will include basic skills training and interview practice.

Unlike any past schemes for this age group, payment will depend on results. Organisations will receive an initial payment for taking young people on, followed by subsequent payments when they show progress – including sticking with training programmes, undertaking apprenticeships, or holding down jobs.

“Sitting at home with nothing to do when you’re so young can knock the stuffing out of you for years,” said Nick. “It is a tragedy for the young people involved – a ticking time bomb for the economy and our society as a whole. This problem isn’t new, but in the current economic climate we urgently need to step up efforts to ensure some of our most troubled teenagers have the skills, confidence and opportunities to succeed.”

“Many of them will have complex problems: truancy, teenage pregnancy, a lack of GCSEs and health problems. So helping them onto their feet will not be without challenges and government cannot do this alone. But we all have a duty to reach out to the young people who can be hardest to reach. That’s why I am calling on charities and other organisations at the coalface to work with government to help tens and thousands of lost teenagers onto a brighter path.”

Funding will be awarded to organisations across England with a proven track record in getting young people into work, apprenticeships, or training. Three areas – Liverpool, Leeds-Bradford-Wakefield and Newcastle-Gateshead – will be able to allocate their own pot of money as part of the Government City Deal agenda, aimed at giving more autonomy to England’s core cities.

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“I am delighted at Edward’s re-election. He has proved a passionate, determined and highly effective campaigner for human rights and democracy. 
 
“As the British Foreign Minister responsible for human rights and a fellow Liberal Democrat, I am greatly looking forward to working with Edward to pursue this agenda, which is so central to the enlightened interests of the UK and Europe as a whole.
 
“With the Arab Spring continuing and tentative steps towards political reforms in Burma, the presence of strong and credible voices, fighting for human rights and democracy at home and abroad, is absolutely essential.
 
“I am convinced Edward is the right man to help ensure that we maximise the collective weight of the European Union in defending and promoting human rights and democracy.”

“Liberal Democrats in the Coalition Government are committed to delivering a tax system which is fair and progressive for everyone, why should working people who are not married pay more tax?

“Our commitment to increasing the income tax threshold to £10,000 has already resulted in an extra £200 in take home pay for millions of workers last year, with an additional £130 coming this April.

“Tax breaks for married couples would only help 4 million couples to the tune of around £150 year.

“This year, thanks to the Liberal Democrats, over 1 million people will have been lifted out of paying any income tax, rising to 4 million by 2015.

“Giving low earners a tax cut is exactly the kind of policy the Coalition Government should and is prioritising at a time when money is tight and people are feeling the pinch.”

Nick Clegg champions Youth Contract

Thousands of companies received a letter this week from the Deputy Prime Minister Nick Clegg calling on them to play their part in getting young people earning or learning.

Nick is urging businesses to sign up to the government’s flagship £1bn Youth Contract so that they are ready to offer the jobs to young people in April. He announced details of how employers can access cash to help cover the cost of taking on fresh talent through a ‘wage subsidy’. The subsidy will be paid to companies for taking on young unemployed people and is designed to cover costs like National Insurance contributions.

The wage subsidy will pay £2,275 to employers for every 18 – 24 year old unemployed person they employ from the Work Programme and is open to all businesses, voluntary organisations and charities.

Payments for the majority of business will be made after the young person has been employed for 26 weeks. For smaller enterprises these payments will be staggered, with the first payment after eight weeks and the rest after 26. This recognises that smaller businesses need a boost to their cashflow to make the jobs viable.

The wage incentive will also be available for part time positions, with a rate of £1,137.50 if someone is employed between 16 and 29 hours.

“Getting young people earning or learning is my top priority, and that’s what the Youth Contract is going to do,” said Nick. “This is a long-term boost to help businesses get young people into jobs before long-term damage is done. Employers have a huge part to play in this and the subsidy we’re announcing benefits business and young people.

“I have written to thousands of employers of all sizes – from global corporations to small local firms – calling on them to look at what we’re offering through the Youth Contract and sign up to offer jobs from April. This is a significant moment and a call to arms for businesses to offer long-term opportunities to young people who are out of work.”

Senior Liberal Democrat MEP and Vice President of the Parliament’s Budget Committee, George Lyon, who is pushing for the EU budget to be radically restructured and independently evaluated to find further savings, commented after the vote:

“At a time when people across the country struggle to make ends meet, it is important that MEPs show some leadership in keeping the Parliament’s costs under control.

“Freezing allowances and travel expenses is a good start. But I believe that we can make many more savings. In order to ensure that taxpayers are getting maximum value for their money, we need to have an independent evaluation of the EU budget to get rid of any inefficiencies and waste.

“I am very pleased that once again MEPs have also voted to push for a single seat of the European Parliament. It is an outrage that Member States still insist that the House travels between Brussels and Strasbourg each month. MEPs are quite right in calling for an urgent evaluation of this situation.”

Liberal Democrat MEPs have been on the forefront of the Single Seat Campaign which calls for the European Parliament to be permanently set up in Brussels. Liberal Democrat MEP and Vice President of the Parliament, Edward McMillan-Scott, who co-chairs the Single Seat Campaign and is launching an EU-wide public petition against its controversial ‘travelling circus’ added:

“The pollution, cost, inefficiency and remoteness of this travelling circus are indefensible. The 1.27 million people who signed up to the OneSeat petition in 2007, calling for the EP to be located only in Brussels, have been ignored by the EU. But Europe’s public today cannot be ignored against a backdrop of economic crisis and pressing environmental concerns.”

Commenting ahead of a vote on the 2013 EU budget guidelines in the European Parliament in Strasbourg tomorrow, Mr Lyon said:

“At this time of national austerity and budget consolidation, the EU budget needs to be shaken up and restructured to get rid of inefficiencies and waste.

“MEPs need to lead the way in identifying and making important savings. All MEP allowances should be frozen until 2014 and we must cap the travel budget at its present level. We must make our money travel further!

“It is also time we had an independent and thorough evaluation of the European Parliament’s budget to make sure that it delivers value for money. For the time being, I want to see a freeze in administrative spending of all EU institutions.”

The Lib Dem MEP went on to argue that a major saving within the European Parliament’s budget would be the adoption of a single seat for the House in Brussels. He added:

“I urge all MEPs to vote for a cross-party amendment for a single seat of the European Parliament. We need to send a strong signal to Member States that it is time to end the travelling circus between Brussels and Strasbourg. It is down to national capitals that we are still spending around £180m a year on pointless trips between those two cities. This wasteful practice must end now.”

The Staffordshire farmer and economic policy expert takes over from Liz Lynne who stood down from Parliament earlier in February after more than 12 years due to the extensive travelling required in the job. Phillip Bennion was elected to second place on the Lib Dem list of candidates at the last European elections in 2009.

Commenting on his new role, Phillip Bennion said:

“I am determined to fight for the vital interests of the whole of the West Midlands region in the European Union and for a more prosperous and democratic Europe. From the shire counties to the manufacturing heart of the nation in Birmingham, this region's economic and environmental future will be shaped by our relationship with the EU.

“Literally hundreds of thousands of local jobs depend on it, so I will do my best to make sure we punch our weight in the corridors of power, whether in Brussels or London.

“I have always been pro-European. I am a strong supporter of a more liberal and democratic EU that concentrates on what it should be doing as simply and efficiently as possible. We are stronger together and would be much poorer apart.

“In our inter-connected world, the financial crisis in all western nations shows that we cannot bury our heads in the sand. If we listen to the siren sceptic voices we will be sleepwalking to disaster.

“Every European country is vulnerable to economic and environmental challenges which individual governments cannot control. Britain cannot tackle these challenges alone but must forge strong alliances with our neighbours. We have to be a strong voice for reform with a seat at the top table.

“I will use my experience as a farmer and independent businessman to work for EU rules that enable European businesses to take on the competition from Brazil, Russia, India and China (the BRICS) and other developing nations. Pointless red tape has to go and pro-active action taken to stimulate investment, trade and new jobs.

“I am committed to doing all that I can to further food, energy and material security in the long term in a way that conserves biodiversity and addresses climate change.

“Liz Lynne did a tremendous job as our MEP. Following her is a huge challenge but I am looking forward to getting to work.”

The leader of the Liberal Democrat delegation in the European Parliament, Fiona Hall MEP said:

“Phillip Bennion has been a very active Lib Dem member and campaigner in the West Midlands over many years. He not only knows the region very well, but also has first hand experience of working at a European level through his involvement with the European Liberal Democrat Party (ELDR) and as chair of the Liberal Democrat European Group (LDEG).

“With his background as a councillor, farmer and businessman, I am sure that he will be a valuable addition to the Liberal Democrat team in the European Parliament and we are looking forward to working with him.”

Confident Ed stands firm

Strongly backed by Nick Clegg, newly appointed Secretary of State for Energy and Climate Change, Ed Davey was quick to make his mark in his new role when he confirmed his personal commitment to green growth, green jobs and the wider use of wind power technology. “I think that onshore and offshore wind power has a real place in a balanced mix of energy generation so I’m a huge supporter of renewables” he said.

100 Tory back-benchers have tabled a motion calling for a dramatic cut in subsidies for onshore wind farms but Ed is very clear where he stands. “Already we’ve seen through the subsidies that this government has invested in onshore wind that the price has come down to make onshore more competitive, so we’ve got money in all sorts of renewables because of the success of these investments.

“There may have been a change at the helm, but there’ll be no change in direction or ambition. My priorities are very simple: green jobs, green growth and getting the best deal for energy bill payers.”Ed and Nick Clegg were visiting the Building Research Establishment’s Innovation Park near Watford, a testing site for green homes, where they met graduates considering moving into green construction jobs. Nick Clegg told them “The race is on to lead the world in clean, green energy. The savviest states understand that going for growth means going green. Low-carbon markets are the next frontier in the battle for global pre-eminence.

“We have every reason to be confident. The combination of enviable wind, wave and tidal power, a world-beating research base and a proud history of engineering give the UK a clear competitive edge. So we’re already in pole position. But the reality is: we need to sharpen our elbows if we want to stay ahead.” Ed Davey also announced that 155 community energy projects across the country have won a share of £5.1 million of funding from the Local Energy Assessment Fund. The winning bids include projects to demonstrate wall insulation to the public, schemes to check the energy efficiency of homes and events to promote energy efficiency in local communities.

While Ed was getting to grips with his new job, Norfolk North’s Liberal Democrat MP Norman Lamb was taking up his new appointment as Minister for Employment Relations, Consumer and Postal Affairs in the Department of Business Innovation and Skills. Welcoming him Secretary of State Vince Cable said “Norman’s professional background as an employment lawyer and experience as the Liberal Democrat’s Trade and Industry Spokesman make him an ideal replacement. He pioneered our policy to privatise Royal Mail and establish employee share ownership in the business so it is fitting that he will be responsible for implementing that policy.”

Norman, who was previously chief political adviser to Nick Clegg, expressed himself particularly delighted to be implementing the Post Office reforms he had pioneered in opposition. These would give employees a stake in the company.

Two other new appointments were announced in the mini-reshuffle. Cardiff Central MP Jenny Willott becomes an Assistant Government Whip and Dunbartonshire East’s MP Jo Swinson becomes PPS to Nick Clegg.

Commenting on the ongoing crisis where Italy, Romania, Bulgaria, Greece, Turkey and Germany have experienced reductions of up to 30% in Russian gas supplies from Gazprom over the last few days, Sir Graham said:

“The freezing conditions across Europe highlight yet again the dangers of being so overly-reliant on Russia for a quarter of our gas. Gazprom has – understandably – diverted its supplies to keep Russian homes warm, leaving many European countries short and prices on the rise.”

“And we just don’t know what Gazprom will do next.”

“But the wind is blowing harder than ever in the Scottish Hebrides and it is 15 C and sunny in southern Spain and Greece. If, instead of building gas pipelines, we were building electricity transmission infrastructure and switching from fossil fuels to wind and solar power, this week’s energy outlook would be a different story. European renewables are the answer to our energy security.”

“Indeed, the sun is also shining bright as ever in the Sahara. Importing electricity from North Africa would in fact be more secure than Russian gas, due to the larger number of potential trading partners and the fact that electricity cannot be switched off like gas. Electricity is the ultimate ‘just in time’ product: that which is not transmitted today is lost forever.”

“The sheer hypocrisy of Labour to point the finger on bankers’ bonuses is staggering. Labour presided over the biggest boom in bonuses this country has seen, from £3.1bn in 2001 to £11.5 billion in 2007. At the same time, they sat back and knighted the financial speculators who led this country to the brink of economic collapse.

“The Coalition Government inherited this economic mess from Labour and has taken decisive action to put the country back on track. We’ve capped cash bonuses at state owned banks to £2,000 and overall, the bonus pool is smaller than last year and considerably less than under Labour.

“In Government, Liberal Democrats are doing the right thing – implementing the Vickers’ proposals to make banking safer in the future, continuing our fight to get the banks to lend more and introducing the banking levy which raises £2.5bn a year. All Labour can do is complain from the side lines.

“While Labour spent thirteen years being intensely relaxed about people getting filthy rich, Liberal Democrats have made clear that our priority is lifting the lowest paid people out of paying income tax all together.”

“Promoting cycling and green transport is the right thing to do and I am delighted Liberal Democrats in the Coalition Government are taking action.

“This comes at a crucial time. Just five days ago The Times launched a cycle campaign in response to the shocking increase in fatalities among cyclists on our roads.

“It is absolutely essential people should be able to walk to work or cycle to school in a safe environment. The extra £8m for Sustrans will go a long way to achieving this.

“And the £7m for improved rail-cycle links will ensure that we continue to build a transport network which puts passengers first.”

Clegg calls time on unfair tax system

At the Institute for Government last Friday, the Deputy Prime Minister gave a major speech on tax and supporting working families.

“The tax system,” said Nick Clegg, “should be designed to reward effort, enterprise and innovation… and bear down on those things which are bad for our society.

“Attitudes to tax are a good proxy for our deepest political instincts and the three major political traditions in the UK – conservatism, socialism and liberalism – have very distinct approaches.”

“The liberal approach, put most simply, is based on a profound commitment to the value of paid work. Citizens are empowered when they can keep the fruits of their own labour. And fiscal liberalism supports taxes on unearned wealth… precisely to lighten taxes on the incomes of hardworking people.

“So the Coalition is calling time on our unfair and out-of-whack tax system.

We’ve put up Capital Gains Tax; we’ve reduced tax breaks on pension funds for the very rich; we’ve clamped down on avoidance – the steps taken already will raise an extra £7bn every year by the end of this parliament. And our priority in government – from the front cover of the Lib Dem manifesto to the pages of the Coalition Agreement – is freeing the lowest-paid from income tax altogether… and cutting income tax for millions of ordinary workers.

“Whether you call them the ‘squeezed middle’, ‘hard-working families’, or, as I have, ‘alarm clock Britain’… it’s the people who whose incomes are too high to qualify for welfare benefits but too low to provide any real financial security who need this extra help. Over the last few decades wage rises have outpaced the increase in the allowance… so that more people have been sucked into the income tax net.

“At the last election my party promised to raise the personal allowance for ordinary taxpayers to £10,000 and I am extremely proud that the Coalition has committed to doing so over the course of this Parliament. I want to make clear that I want the Coalition to go further and faster in delivering the full £10,000 allowance.

Because the pressure on family finances is reaching boiling point … these families cannot be made to wait.

“Delivering the £10,000 personal allowance more quickly will need to be fully funded. But to those who say: we cannot afford to do this. I say: we cannot afford not to do this.

“It is often said that to govern is to choose… and, in particular, to choose whose side you are on. That is especially true when there is no money around. My choice – the Liberal Democrat’s choice – is clear: I want to help hard-pressed and hardworking families. If that means asking more from those at the top – so be it.

“We are committed to eliminating the deficit… and eliminate it we will. But I am determined that we do so in a way that is fair…that rebalances our economy…that gives the right people the right rewards.

“People look to the Liberal Democrats to keep this Coalition anchored in the centre ground. They want economic competence, but they want compassion too.

It is our job to make sure this government delivers both.”