Youth Contract providers implored to work with local authorities

The Deputy Prime Minister Nick Clegg last week unveiled a list of providers selected by government to run the part of the £1bn Youth Contract scheme dedicated to working with 16- and 17-year-olds who are not in employment, education or training (Neet).

The organisations will share up to £126m funding on a payment-by-results basis over the next three years, should they successfully help young people into work or training.

Local authorities across England will be required to refer young people onto the government-appointed providers spanning 19 regional areas.

But Peter Box, chair of the LGA’s economy and transport board, argued that a “nationally driven one-size-fits-all” approach to tackling youth unemployment is proven not to work, and could duplicate efforts already being carried out by councils.

“This development adds to an already complex funding picture by introducing yet another set of organisations all competing to help the same people,” he said.

“Councils are left with the unenviable task of trying to coordinate all of this. Young people need to be at the very centre of a service that fits around their aspirations and support can only be effective if it is coordinated and tailored around local services, learning providers, and the jobs available to these young people.”

Liverpool, Leeds and Newcastle will be exempt from the national payment-by-results scheme and will instead receive their own funding allocations from government to spend on 16- and 17-year-old Neets, as part of the “City Deal” programme – an initiative to devolve Whitehall funding to local level.

Box argued that all local areas should have been given their own funding to work with Neets.

“We are concerned that all too often, organisations with little knowledge about the local factors which are driving youth disengagement cannot provide effective support for young people out of work or learning,” he explained.

“Failure to get this right will be disastrous for young people and could have scarring effects that last a lifetime.”

“Local authorities are already working to reengage young people back into work, education or training. It’s now vital that government makes sure the local organisations chosen to deliver job support, through the Youth Contract, work closely with councils for the entirety of this three-year programme.”

Clegg argued that the charities and businesses chosen by government for the scheme are equipped with the local knowledge to support disengaged young people back into work or training.

“That’s why we’re unlocking funding for these organisations to be as creative and innovative as they can, to do whatever it takes, to get the young people who need it most back on their feet,” he said.

“In exchange for this freedom, all we ask is that they get results. It’s a win-win for government, young people and the organisations involved.”