Youth Unemployment

Thursday 16th October 2025 Lords Chamber

Question

11:43

Asked by

[Lord Sharpe of Epsom]

To ask His Majesty’s Government what steps they are taking to reduce youth unemployment.

[The Minister of State, Department for Work and Pensions (Baroness Smith of Malvern) (Lab)]

My Lords, too many young people are at risk of being left behind without the right skills, opportunities and support to thrive. This Government are committed to changing that, which is why the Chancellor has announced a job guarantee scheme for young people on universal credit who have been unemployed for over 18 months. This is a key part of the Government’s youth guarantee, and further details will be set out in the upcoming Budget.

[Lord Sharpe of Epsom (Con)]

I am grateful to the Minister for her Answer, and I hope it all works. However, earlier this week, the ONS published the latest jobs data, which the Daily Telegraph reported by stating:

“Young workers are taking a particular beating in the jobs market, with a slump in graduate vacancies, and drops in hiring particularly in the retail and hospitality industries which often offer workers their first roles”.


Given this appalling backdrop, can the Minister explain why the Government, who say they are committed to this, have rejected my amendment to the Employment Rights Bill, which is universally supported by employers, and which would mitigate the effect of day-one unfair dismissal rights? That policy, if enacted, will obviously reduce employers’ willingness to take risks in hiring young people.

[Baroness Smith of Malvern (Lab)]

I am always pleased to hear the views of the Daily Telegraph on issues around young people’s employment. I hope that the Telegraph, as well as the noble Lords opposite, will get behind this Government’s efforts on the youth guarantee and on cutting the unacceptably large number of young people who are currently neither earning nor learning. On the Employment Rights Bill, the Government aim to protect employees from arbitrary dismissal, including those early in their careers. A statutory probation period will be introduced with light-touch standards for fair dismissal based on performance and stability, and that approach appropriately balances worker protections with the need for employers to assess new hires confidently.

[Baroness Bousted (Lab)]

Does the Minister agree that a major factor in the persistence of youth unemployment is that 32% of 16 year-olds failed to achieve a grade 4 in English and Maths at GCSE in 2024? Does she also agree that the ongoing curriculum and assessment review, led by Professor Becky Francis, must reunite knowledge and skills in the school curriculum—they are two sides of the same coin—and provide routes for pupils to remain in education or training as a foundation for their future working lives?

[Baroness Smith of Malvern (Lab)]

My noble friend is absolutely right that the opportunities that young people have throughout their lives are dependent on the standards, quality and success that they experience in schools. That is why we have already taken action to ensure that new routes are available for young people post-16—for example, through foundation apprenticeships—and why we have increased the support available to young people in colleges to get the qualifications in English and maths that are so important for them later in life. It is also why, through both Becky Francis’s curriculum and assessment review and the Government’s post-16 skills and education White Paper, we will have more to say about how we ensure that there are clear, successful routes for all our young people post-16.

[Lord Palmer of Childs Hill (LD)]

My Lords, I am disappointed to hear the Minister, in discussing youth unemployment, mention universal credit and other such things. I ask the Minister to consider whether—as I would have thought—one of the basic ways of reducing youth unemployment is to encourage and introduce more apprentices. If only we had people who were encouraged financially by the Government in plumbing, electrical work and all the trades that people need; instead, we are using people from overseas because we are not training anyone. Are the Government giving financial incentives to the plumbers, electricians and so on to train the tradespeople for the future?

[Baroness Smith of Malvern (Lab)]

I reassure the noble Lord that we are indeed doing that. He is right that the fact that there has been a 40% reduction in young people starting apprenticeships over recent years is a shocking indictment of the previous Government’s approach to skills and the training of young people. That is why one of the measures we have introduced—just this August—is new foundation apprenticeships to support young people into employment in a range of different areas important both for them and the economy. Incidentally, they include a £2,000 incentive for the employer to take on those young people for training. We will have more to say about that and the opportunities for young people when we publish our post-16 White Paper.

[Lord Geddes (Con)]

My Lords, by way of illustration, I cite the example of my 23 year-old granddaughter, who has a first-class degree from the University of Birmingham in physics. She applied to over 200 potential employers and did not even get a reply from any of them. Can the Minister encourage such potential employers at least to have the courtesy of replying to the young?

[Baroness Smith of Malvern (Lab)]

The noble Lord makes an important point about how employers should recognise the efforts that young people put into applying for those roles. We recognise that some graduates face challenges in getting jobs. However, it is still the case—and I hope the noble Lord’s granddaughter will be reassured by this—that UK graduates continue to have strong and above-average employment rates. If she or other graduates need additional help as well as comprehensive jobseeker support, graduates under 24 benefit from all of the tailored jobcentre offer available to all young people on universal credit.

[Lord Austin of Dudley (Non-Afl)]

My Lords, the Minister has been doing brilliant work on this agenda for decades, so it is great to see her in her place. Following on from the brilliant question from the noble Lord, Lord Palmer, a moment ago, will the Minister tell us how many apprenticeships are provided in each government department? Will the Government set a commitment to increase that number, because I know that it is not high enough? Will the Government also place a duty on local councils to increase the number of apprenticeships that they provide? Will the Government consider requiring organisations and companies in receipt of public funds, such as housing associations or charities, to provide apprenticeships in return for receiving that support?

[Baroness Smith of Malvern (Lab)]

I thank my noble friend for that. I do not have at my fingertips the numbers of apprentices employed in each of the government departments. He makes an important point about the role of the public sector, procurement and ensuring that we are linking government spending with the development of skills. That is certainly something that we are doing across government. The Prime Minister could not have been clearer about the significance of enabling young people to gain higher-level skills alongside the excellent opportunities provided by our universities, in setting, as he has done, a clear ambition for the Government to deliver for two-thirds of young people the opportunity of higher-level apprenticeships or higher technical qualifications or degrees. The Government will now get behind that ambition.

[The Earl of Clancarty (CB)]

My Lords, the curriculum review has been mentioned. Would not the Minister agree that it is really important that the curriculum is reset to reflect a well-rounded education? The arts have been diminished in schools in recent years, and the creative industries will be hugely important for our young people in terms of employment in the future.

[Baroness Smith of Malvern (Lab)]

The noble Earl is right that, as part of the curriculum and assessment review, Becky Francis is considering the large amount of evidence that has been provided, and she has been clear in the challenge that the Government have set her, and that she has set herself, that maintaining a strong knowledge base within our curriculum is fundamentally important but so is providing the space for teachers and others to enable young people to develop their creativity in the very widest sense. I am sure we will hear more about that when the curriculum and assessment review is published.

[Baroness McIntosh of Hudnall (Lab)]

My Lords, building on the answer that the Minister gave to my noble friend Lady Bousted, can she confirm that schools value all the various ways in which young people can move from education into further and higher education and into employment, and do not unnecessarily downgrade the virtue of, for example, BTECs and other forms of vocational qualifications, which I think historically has been the case?

[Baroness Smith of Malvern (Lab)]

I think there have been improvements in careers education in recent years, something that this Government are determined to build on. One of the key points, as my noble friend says, is how we provide young people with information, advice and guidance on the whole range of opportunities available to them, both in academic routes through A-levels and in technical routes through T-levels and apprenticeships, which we are determined to support for younger people. We will have more to say about all that in our post-16 White Paper soon.