Youth employment levy revenue and collection
The Minister estimated £75 million in levy revenue for 1983 and outlined departmental spending on youth employment, training and work experience, with 45,000 young people expected to benefit. He said 1982 collections came only from PAYE workers; self-employed people and farmers were expected to contribute about £4.76 million and £4 million respectively in 1983. De Rossa criticised the levy’s burden and questioned whether those contributions would be collected, and the Minister assured him they would.
asked the Minister for Labour (a) the total revenue expected from the youth employment levy; (b) how it will be allocated and to what agencies; and (c) the number of young people who will be employed as a result.
Comment on this
: The youth employment levy will raise an estimated £75 million in 1983, the first full collection year. In that context, the Government have provided for a sum of £77 million in my department's 1983 Estimates for activities in the area of youth employment, training and work experience, including the activities of the Youth Employment Agency. The £77 million includes expected social fund receipts of £2 million in respect of certain youth programmes administered by my Department. The £77 million is allocated as follows:—
A balance of £0.734 million remains to be allocated.
Introduction of the levy in 1982 has enabled expenditure to be increased substantially on youth employment, training and work experience schemes. About 45,000 young people are expected to participate in such schemes in 1983, as compared with 35,438 in 1982 and 22,478 in 1981.
Comment on this
: Would the Minister now give a reply to the question I asked about the breakdown of moneys from the PAYE sector, the self-employed and farmers?
Comment on this
: The levy yield in 1982 was £38.145 million collected up to 31 December 1982. That was £1.846 million less than the £40 million originally estimated for the nine-month period since the introduction of the levy. The levy was collected from the PAYE sector only and, therefore, I assume the shortfall of £1.846 million is in the region of what would have been collected from the other areas mentioned.
Comment on this
: In 1983 it is anticipated, in addition to the PAYE sector, that two other categories will be liable, the self-employed and farmers, and they will also pay the levy. It is estimated that the yield from the self-employed will be £4.76 million and about £4 million from farmers in a collection year.
12.
Comment on this
asked the Minister for Labour (a) the number of self-employed and farmers who are liable for the payment of the youth employment levy; (b) the number from whom payments have been received; (c) the number from whom payments were outstanding at 31 December 1982; (d) the total amount received in payments during 1982; and (e) the total amount outstanding at 31 December 1982.
Comment on this
: Following is the information sought:
(a) 106,500 self-employed and 104,000 farmers.
(b) nil.
(c) as at (a) above.
(d) nil.
(e) £6.5 million in respect of farmers, and £11.5 million in respect of the self-employed.
Comment on this
: Would the Minister not agree, having gone through all these questions on the Youth Employment Agency and his reply to this question, that the working class are being conned in relation to this agency? They are the only people who are paying this levy and no permanent jobs are being created by the Youth Employment Agency. They are paying a levy of 1 per cent of their income in order to provide jobs for their children and practically no jobs are being created.
Comment on this
: I do not agree with what the Deputy has said. The employment agency was set up under the Act — and was met with unanimous agreement in this House — to give work experience training and employment to young people. I have given the numbers who have benefited by it in the past year and what is expected in the coming year, a figure of 45,000 which is not negligible by any standards. I have taken steps with the Minister for Finance to see that moneys this year will be collected from the self-employed and farming sectors.
Comment on this
: The moneys that are being collected are being collected solely from the PAYE sector. Previous experience has shown that, for instance, social insurance contributions which the self-employed and farmers are obliged to pay have not been collected. Can the Minister give any assurance at this point that the youth employment levy will be any more effectively collected?