5. Youth Unemployment—Youth Guarantee SchemeCHRIS HIPKINS (Labour—Rimutaka) to the Minister for Tertiary Education Skills and EmploymentYouth Unemployment—Youth Guarantee Scheme5. CHRIS HIPKINS (Labour—Rimutaka) to the Minister for Tertiary Education Skills and Employment: Does he agree with John Key who said when announcing the Youth Guarantees policy that the bottom line is this—the days of 16- and-17-year-olds being able to leave school and drift along aimlessly while being financially supported by the Government are at an end?".Hon STEVEN JOYCE (Minister for Tertiary Education Skills and Employment): Absolutely yes. The Youth Guarantee scheme was introduced commencing in 2010 to address the problem of young people leaving school with low achievement and destined to be "neet" and in receipt of a benefit from age 18. It was significantly expanded in 2012 when the ineffective Youth Training programme was absorbed into the scheme. The purpose of that change was to give the Youth Training students a stronger focus on educational achievement as well. It has been very effective in improving educational achievement at National Certificate of Educational Achievement (NCEA) level 2. It is also along with other programmes improving employment outcomes. More young people are achieving NCEA level 2 than ever before while young people aged 15 to 19 and not in education employment or training are at the lowest levels on record. "Neets" overall are back to pre - global financial crisis levels.Darroch Ball: Not pre-2008 levels. Hon STEVEN JOYCE: Yes—September 2008 actually. Chris Hipkins: Did the latest monitoring report of the policy find that participants in the Fees-free scheme are more likely to end up on benefits after completing the programme; if so does he think that the days referred to by the Prime Minister over 8 years ago are now at an end?Hon STEVEN JOYCE: No. In terms of the Fees-free side there has not been a big increase in terms of employment of that 2012 cohort but it is important to note that that report was done in 2014 and only takes into account the employment considerations for the 2012 cohort which was the first year that it was transferred from Youth Training to Youth Guarantee. In terms of the educational achievement we have seen a significant lift in that. In terms of the employment achievement it is probably a little bit early but we also want to see that lift over time.Chris Hipkins: Did the evaluation find that the young people participating in the programme were more—or less—likely to end up on a benefit as a result of participating in the programme?Hon STEVEN JOYCE: I understand that it was about the same. Chris Hipkins: Has he read the line in the report that states that "any difference in outcomes between these groups can be attributed to the programme"; if so does he think that an additional 2020 young people receiving benefits 869 more "neets" and 440 fewer people in full employment are good outcomes?Mr SPEAKER: Again there are two supplementary questions there—the Minister can address either. Hon STEVEN JOYCE: What I know about that report is that it actually underlines the increase in educational achievement at NCEA level 2. The member can try to ignore that if he wishes but that is the primary aspiration of that scheme—to lift NCEA level 2 achievement—because we all know that if you get at least NCEA level 2 you can do better in the future. In terms of employment frankly the member is way too early because it relates only to the first year of Youth Training. He should wait and see how it goes—and anyway "neets" are now at their lowest level for 15- to 19-year-olds that they have ever been.Dr Jian Yang: What new steps is the Government taking to ensure more young people—[Interruption] Sorry I will start again.Mr SPEAKER: Order! Every member has a right to ask a question.Dr Jian Yang: What new steps is the Government taking to ensure more young people are engaged in education and training?Hon STEVEN JOYCE: Well as indicated in the primary answer to this question the Government is making good progress in reducing the number of disengaged young people with more young people achieving NCEA level 2 than ever before and "neet" rates particularly of 15- to 19-year-olds at the lowest percentage levels that we have ever had—right back to 1989. So we now see an opportunity to do more and this week education Minister Hekia Parata and I announced a new Youth Guarantee programme a secondary-tertiary programme called DualPathways alongside the other programmes. This will allow students to be enrolled part-time both in secondary school at years 12 and 13 and part-time in either tertiary education or industry training. That will allow more young people to fully explore career options while they are still enrolled at school and get a head start on the skills employers are looking for. It is the latest in a number of programmes that are serving to bring "neet" levels to record lows.Chris Hipkins: So is the Minister seriously arguing that if participation in the Fees-free scheme increases a young person's likelihood of achieving NCEA level 2 but also increases their likelihood of ending up on a benefit that is a successful outcome?Hon STEVEN JOYCE: Well again for the member's benefit let me take him through the cohorts that are measured in that report. Those cohorts relate to 2010 2011 and 2012. The 2012 cohort for the first time picked up the failing Youth Training programme which was not even delivering educational outcomes; it was delivering nothing. That programme came into Youth Guarantee in 2012. We now have the educational achievement to show for it and we are also through the "neet" numbers seeing the lowest numbers of 15- to 19-year-old "neets" that we have ever seen since the series began in 1989.Chris Hipkins: So is he seriously arguing that students are better off having participated in a programme—being forced to participate in a programme by the Government—that makes them more likely to end up on a benefit at the end of it?Hon STEVEN JOYCE: Firstly nobody is forced to participate in the scheme. They are not forced to participate.Hon Members: They are!Hon STEVEN JOYCE: Nobody is forced to participate in Youth Guarantee's Fees-free programme but they are achieving educational outcomes at NCEA level 2 that will last their entire lives. I think that is an excellent outcome for those young people. The member can pooh-pooh it if he likes but I know young people who are very proud of achieving level 2 NCEA when they dropped out of school at 14 turned up at Fees-free Youth Guarantee and now have their NCEA level 2. To me that is worth a lot for those students."