For too many young people, the transition from education into employment is becoming harder. Employers face rising costs and are understandably cautious about taking on additional staff. Young people without extensive experience then find themselves trapped in the familiar catch-22: they need experience to get a job, but they need someone to give them a job to gain that experience.
In Watford, Three Rivers and Hertsmere, the Liberal Democrats are trying to do something different to solve this problem whilst simultaneously supporting local economic growth.
That is why we are calling on the Government to establish a pilot “Special Economic Zone” for young people and the creative industries across Watford, Three Rivers and Hertsmere.
The idea is relatively straightforward. Creative-sector businesses taking on a new apprentice would be exempt from employer National Insurance contributions for that employee.
It would give businesses a direct financial incentive to create genuinely new opportunities for young people, while supporting a sector with enormous potential for our local economy.
Fundamentally, this proposal is about giving young people a chance by removing the financial disincentives that Labour have put in place through successive employment reforms.
When we talk about young people who are not in education, employment or training, it is very easy for discussions to become dominated by statistics and acronyms such as “NEET”. Behind those statistics, however, are real people who want the opportunity to build their independence, develop their skills and start their careers.
Yet because entry level jobs in every sector are becoming increasingly difficult to obtain, young people remain locked out of many sectors. The evidence on this is clear, the longer somebody remains outside employment, the harder that first step can become.
At the same time, we need to recognise the pressures facing employers. A small or growing business might want to give an 18 or 19-year-old their first opportunity but ultimately decide that the costs and risks involved are simply too high.
Our proposal would change that calculation.