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Matching Germany’s jobs support could cost Britain £6bn a year
Alan Milburn is expected to recommend greater investment in employment support as part of his review of rising youth unemployment in the UK. Matching Germany’s spending rate could cost the Government more than £6bn a year, though Andy Burnham has said upfront support could eventually reduce welfare costs.
The UK spends about 0.1 per cent of GDP, or £3.7bn, on helping people into work, compared with 0.3 per cent in Germany and 0.4 per cent in Denmark. UK youth unemployment is 15.6 per cent, and nearly one million 16- to 24-year-olds are not in work, education or training. The Government is not expected to respond formally to Milburn’s recommendations until next April, and the OBR has warned it will require strong evidence before counting projected benefits from new schemes.
In short
- Matching Germany’s job support could cost the UK over £6bn a year.
- Britain spends £3.7bn annually helping people into work.
- Nearly one million young people are not in work, education or training.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Greater investment in employment support could give young people practical help to find and keep work, addressing unemployment before it becomes entrenched. If effective, better support may also increase employment and reduce future welfare spending, as Burnham argues, while bringing the UK closer to spending levels in countries with lower youth unemployment.
The case against
Spending more than £6bn a year to match Germany’s rate would commit substantial public money when the benefits are uncertain. The OBR’s insistence on strong evidence reflects a reasonable concern that projected savings may not materialise, so funds could be better directed to schemes with clearer results or other priorities.
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Originally published by Daily Mail as “It will cost £6BILLION to get young people back into work, Alan Millburn tells Andy Burnham”.