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Young jobless cost taxpayers over £180m every year

Labour believes that highlighting the stubbornly high youth unemployment rates is a potential vote winner

Mark Leftly
Sunday 04 January 2015 01:00 GMT
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Nearly 30,000 people aged 24 and under have been on the dole for longer than a year (Getty)
Nearly 30,000 people aged 24 and under have been on the dole for longer than a year (Getty) (Getty)

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Long-term youth unemployment is costing taxpayers more than £180m a year, according to new analysis by Labour.

Rachel Reeves, the shadow Work and Pensions Secretary, seized on the figures, arguing that youth unemployment was "a huge waste of [their] talents and potential". Nearly 30,000 people aged 24 and under have been on the dole for longer than a year and each is estimated to cost the economy £6,243 a year in benefits and lost tax revenue.

Labour believes that highlighting the stubbornly high youth unemployment rates is a potential vote winner. Last summer, the Institute for Public Policy Research think-tank argued that the types of jobs available for 16 to 24-year-olds were not appropriate given the more technical subjects many were qualified for or had trained in.

Rachel Reeves is the shadow Work and Pensions Secretary
Rachel Reeves is the shadow Work and Pensions Secretary (Jason Alden)

A Department for Work and Pensions spokeswoman pointed out that long-term youth unemployment fell in 2014 and added: "There are around 700,000 job vacancies at any one time and we're working hard as part of our long-term economic plan to support Jobseekers' take-up of those."

Labour has pledged a six-month paid job to every young person out of work for a year or more, funded by a fresh tax on bank bonuses and restricting pension tax relief for those earning more than £150,000.

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