On 30th July 2014 Baroness Sherlock asks Her Majesty’s Government what action they are taking to reduce levels of youth unemployment following the recent closure of the youth employment contract incentive scheme. The Bishop of St Albans, the Rt Revd Alan Smith, asked a supplementary question:
The Lord Bishop of St Albans: My Lords, a significant part of the problem is that there are some posts suitable for young people, but they are often in parts of the country where accommodation is prohibitively expensive or the cost of commuting simply precludes them from taking those jobs. In the light of that, have Her Majesty’s Government considered embracing the concept of the living wage for all people of working age?
Lord Freud: Obviously we have looked at the living wage. If the figure suggested for the living wage were to be adopted, we would have to consider the impact on unemployment and the particular impact on youngsters, who would be hit worst. The NIESR estimated that adopting the living wage as opposed to the minimum wage would knock 300,000 youngsters out of work.