MPs have criticised ministers for failing to consult Skills England and employers before removing public funding for level 7 apprenticeships. The influential work and pensions committee also branded the current level of young people not in employment, education or training (NEET) a “travesty”, and warned eligibility for the government’s paid work experience scheme is “too tight”. Committee members published their report on youth employment, education and training on Wednesday, blasting the government’s “lack of coherence” over the crisis. The cross-party group of MPs urged the government to stop tinkering with the apprenticeships system until it has a better understanding of its impact. And while ministers were “right” to rebalance apprenticeships towards young people, the decision to defund standards pursued by a high proportion of over-25s was “too blunt”, the committee argued. The report added: “Defunding these apprenticeships will have an immediate impact on many workers looking to retrain, reduce opportunities for people from disadvantaged backgrounds, and risk inadvertently harming the prospects of young people looking to enter the labour market. “It is deeply regrettable that DWP only sought evidence from Skills England and employers after making its defunding decisions.” ‘Not convinced’ Skills England was asked to gather evidence on the impact of the policy only after the defunding decision was announced. It found level 7 apprenticeships generally recruit older learners, with exceptions including accountancy and taxation where 71 per cent of apprentices were under 25. And the agency said the programmes improved access to some professions, such as boosting diversity in the legal profession. Overall, MPs on the work and pensions committee said they “remain to be convinced” that changes to the apprenticeship system will deliver the goal of refocusing the training route on young people. They added: “England’s apprenticeship system suffers from overly complex systems, excessive policy tinkering and an ongoing lack of esteem for vocational training. DWP must do more if it wants apprenticeships to deliver for young people.” Constant changes to formats and funding rules have also left employers “disincentivised”, MPs said. The committee urged the government to “closely monitor” the impact of the growth and skills levy, set out how it would evaluate the system, and build a greater understanding of when to intervene. The government should “avoid further changes” until it has assessed the effectiveness of the current framework, MPs recommended. The Department for Work and Pensions should also explain how it will improve awareness and understanding of apprenticeships, including through the Department for Education, which should also ensure that schools, colleges and educators are promoting apprenticeships alongside other non-academic routes. The committee said none of the causes of young people becoming NEET were “inevitable” and argued various support systems including schools and children’s health services had “failed” in recent years. MPs called for a youth employment strategy that is cross departmental, long term, and has ambitious targets for increasing rates of employment, education and training. The report follows the release of Alan Milburn’s interim report into young people and work in May, which identified systemic issues across education, health and welfare. Jobs guarantee limited Tight eligibility for the government’s jobs guarantee programme of six months’ subsidised employment will “limit its impact”, the committee warned. Members cited Resolution Foundation estimates that 44 per cent of the estimated one million young NEETs will not be able to access the scheme because they are not on benefits. Milburn’s interim report found it was also closed to 290,000 young people who were out of work on health and disability benefits. The committee said: “We are concerned about the long-term impact on a young person of being unemployed for 18 months and that waiting a year and a half before offering a work placement risks undermining the benefits of the scheme.” MPs called on the DWP to publish a cost-benefit analysis for the programme showing different options for how long someone is unemployed before the scheme kicks in. Tax, policy churn and incoherence To prevent the youth guarantee from becoming another “here-today-gone-tomorrow” programme that joins the list of six other youth-focused schemes launched since the late 1990s, the DWP should commit to funding over the next decade, they said. On tax, the committee urged the Treasury to extend the national insurance upper secondary threshold to all employees under 25, so employers pay no class 1 contributions until a young worker earns more than £967 a week. Employers already avoid contributions below that level for apprentices under 25 and all employees under 21. MPs also slammed the DWP’s lack of coherence on its benefits policies for young people and apprentices as “inexcusable”. They highlighted punishing rules for 16 to 18-year-olds from families on benefits, young adult carers who study for more than 21 hours a week, and the DWP’s proposed removal of the health element of universal credit for under-22s, which the government has not ruled out. “[DWP] has not produced evidence to justify a different approach for young people or that such a change would have a positive employment effect,” the committee said. A Government spokesperson said: “The decision on level 7 apprenticeships was informed by a wide range of evidence, including insight from Skills England informed by extensive engagement with over 700 stakeholders. “We are shifting funding to young people to reverse a 40% decline in youth apprenticeships over the past decade, and creating shorter and more flexible courses which employers have been calling for. “Our £2.5 billion youth employment package will support almost one million young people and help deliver up to 500,000 opportunities to earn and learn, while Alan Milburn’s review is investigating the barriers stopping young people from getting into work.” Work and pensions committee chair Debbie Abrahams said the inquiry heard from young people who were “demoralised” by unemployment and felt like “leeches” on their families. She added: “This situation is not only unfair to them, it is also harmful. Even a short spell as NEET in one’s formative years can damage mental health, impact future career opportunities and reduce lifetime earnings. “Young people face an uphill struggle in current conditions to get that critical work experience. “While the Youth Guarantee is a good start, the contradictions between the government’s strategic aims and the rules of various schemes mean we desperately need a youth employment strategy.”