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The below Parliamentary question was asked by Andy McDonald on 2015-11-17.

To ask Mr Chancellor of the Exchequer, with reference to the document, Fixing the Foundations: Creating a more prosperous nation, Cm 9098, published in July 2015, if he will publish his Department’s analysis linking the introduction of a Youth Obligation for 18 to 25 year olds on universal credit with increased productivity.

Mr David Gauke

The Government is introducing a Youth Obligation for 18-21s on Universal Credit, to help them into sustainable employment.

From day 1 of their claim, young people will participate in an intensive support regime in return for their benefit. After 6 months, we will expect them to apply for an apprenticeship, traineeship, gain work-based skills, or go on a work placement.

As set out in “Fixing the Foundations: Creating a more prosperous nation”, this is part of the Government’s plan for achieving full employment. The Government wants to ensure that young people are given the support, skills and experience to move into work, fulfil their potential and make a contribution to a productive economy.

The below Parliamentary question was asked by Andy McDonald on 2015-11-17.

To ask Mr Chancellor of the Exchequer, with reference to the document, Fixing the Foundations: Creating a more prosperous nation, Cm 9098, published in July 2015, if he will publish his Department’s analysis linking changes to tax credits with increased productivity.

Mr David Gauke

The Paper, “Fixing the Foundations: creating a more prosperous economy” focuses not on the link between welfare reforms and productivity but instead on how ‘a productive economy must make the most of its labour force and effectively mobilise people into jobs’.

This governments tax and welfare policies are supporting this end.

The below Parliamentary question was asked by Andy McDonald on 2015-11-17.

To ask Mr Chancellor of the Exchequer, if he will estimate the annual change in tax revenue from extending the national living wage to those aged between 18 and 25.

Mr David Gauke

Younger workers tend to have less experience than older workers in the labour market, and so there is a risk that too high a wage rate may make them relatively less attractive to employers. So, to minimise any negative impact on employment of younger workers, the National Living Wage is limited to those 25 and over. The Government has not therefore made an estimate of what the fiscal impact of this policy change would be.

The Office for Budgetary Responsibility estimate that, by 2020-21, the National Living Wage will increase income tax and NICs receipts by around £0.1bn, as set out in Table B.3 in of their July 2015 Economic and Fiscal Outlook. They assume that, by 2020-21, the overall impact of the policy on the public finances is to reduce public sector net borrowing by £0.2bn.