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.