Adur, West & East Worthing Party including East Arun

Ed’s plan does not provide jobs that last – Swinson

Commenting on Labour’s Real Job Guarantee, Liberal Democrat MP for East Dunbartonshire, Jo Swinson said:

“Labour have found yet another new use for their bankers’ bonus tax, a seemingly endless fund of money. But their proposals do not stand up to scrutiny.

“The Real Job Guarantee is a pale comparison to the Youth Contract launched by Nick Clegg and shows Labour still doesn’t understand how the economy works.

“Just like with previous job schemes which Labour dreamt up while driving the economy towards a cliff edge, Ed’s plan does not provide jobs that last. As soon as a Government stops paying the full wage, employers would have no incentive to keep someone on.

“The Youth Contract provides a helping hand with real, private sector jobs and gives young people the skill needed for a lifetime of work through placements, apprenticeships and other additional support.

“Labour still can’t be trusted with the economy and now they can’t be trusted with helping young people into work either.”

Please find a comparison between the two schemes below:

  Youth Contract Real Job Guarantee
General £1bn worth of money to support:


–          160k wage subsidies

–          250k work experience placements

–          20k apprenticeship incentive payments for SME

–          Extra support from Job Centre+ advisers

–          Careers interview for everyone that wants one

–          £126m for disengaged 16-17 year olds in England

–          Weekly signing from month 5-9 on JSA


£600m scheme to support:


–          100k part-time jobs for six months, which at National Minimum Wage cost around £400m


Wage Subsidy Specific
When? –          After 9 months on JSA through the Work Programme.

–          Young people could make use of the job anytime between 9 months and 24 months.

–          Some harder to help young people access the Work Programme after 3 months and can benefit from the wage subsidy at that point

–          Young people would be ‘guaranteed’ a job at 12 months on JSA.
Type of Job –          Permanent job in predominantly the private sector –          Unclear, but claim that bulk will be in the private sector.
Sanctions –          Those on a wage subsidy job are employed. They are under no sanction from the state but they must fulfil the obligations in their employment contract.

–          Those dropping out of work voluntarily are not eligible to receive JSA for up to 26 weeks (existing rules)

–          Those not participating will face consequences, including benefit sanctions.

–          That means no one would be eligible to claim JSA after 12 months as all will be offered a job.

–          Unclear how they will treat those on the programme. As working 25 hours, they should leave benefit – therefore the state can place no benefit sanction on them.

–          Also unclear that if they leave benefit (by working 25 hours) then the state cannot enforce other conditions on them.

–          There is no current way of enforcing other conditions, despite claims that their being on a programme would allow for sanctions, unless branded not as employment but a Govt training scheme.

Impact –          Youth Contract gives support with real jobs and is tied into the Work Programme, with incentives for providers to ensure jobs are sustained and young people stay for well over six months. –          These are fully paid-for jobs – so there is no guarantee that the job stays on once the Government money stops, returning young people to JSA again.


Published and promoted by Tim Gordon on behalf of the Liberal Democrats, both at LDHQ, 8-10 Great George Street, London, SW1P 3AE.