Working-age Welfare System

Debate between Baroness Sherlock and Lord Mohammed of Tinsley

Tuesday 1st September 2026 Lords Chamber

[Baroness Sherlock (Lab)]

The right reverend Prelate raises a really important point. As I know he knows, in our work on rebalancing universal credit, the Government are making the first above-inflation increase in the standard rate of universal credit. We are also investing in other things that support people with the cost of living: help with housing, with heating and with childcare. We need to support those who are out of work. Also, a lot of people on universal credit are in work, so it is important for us to help them to get on in work, develop, improve their salaries and have opportunities. Most people do not want to spend their entire life out of work. It is not good for them; it is not good for the state. That is our job.

[Lord Mohammed of Tinsley (LD)]

My Lords, can I talk about the young people whose parents are the richest—that is, the corporate parents, us, the state? In particular, can I press the Minister on supporting looked-after young people? What particular support can those young people who are leaving care look forward to from this new Government?

[Baroness Sherlock (Lab)]

That is a really important question. The Government take a number of specific steps. For example, we know that some young care leavers find it hard to get into work, so we have people in jobcentres who are specialists in that area, who identify care leavers, work with them and give them extra support. There is help for them to get extra qualifications which they may not have. We have schemes about working with employers to employ care leavers. We have people who can help them develop at the next stage. Many of them get different levels of support in the benefits system depending on their circumstances. All that makes a difference, but in the end most of them are like other young people: they need an opportunity. We are now creating a range of things: a youth guarantee, support for those who need help, hiring centres for employers—and, if you are still there after 18 months, a guaranteed job for six months with this Government. That is the help people need.

Jobs Market: Wider Economic Implications

Debate between Baroness Sherlock and Lord Mohammed of Tinsley

Thursday 18th December 2025 Lords Chamber

[Baroness Sherlock (Lab)]

My Lords, the noble Viscount will know that we have a number of what we call sector work programmes to develop skills and support people into many areas of our economy, including hospitality and retail, and many others. I come back to the fact that there are challenges across the globe. The UK unemployment rate is firmly below the EU 27 average. The UK has the third-highest employment rate among the G7—higher than Canada, the USA, France and Italy. I fully accept that these have been challenging times but there has been a reduction in demand across the globe, for a range of reasons. I am confident that things are looking good. We are seeing, for example, that vacancies have stabilised. We are seeing interest rates coming down and businesses getting more certainty, not least from the fact that we now have an Employment Rights Act.

[Lord Mohammed of Tinsley (LD)]

My Lords—

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[Lord Mohammed of Tinsley (LD)]

My Lords, I am more than happy to speak to Alan Milburn, given my long experience of working with NEETs. The question I will ask the Minister is about His Majesty’s Government having two key priorities. One is around net zero and the other is building 1.5 million homes. I want to know: what is the strategy around young people and apprenticeships? I ask this because I spoke to a young person studying at Sheffield College who is doing an electrician course. He is really stressed out that he is unable to get the apprenticeship course he needs to get properly qualified and contribute to the economy, because otherwise he told me that he will look for a job in McDonald’s.

[Baroness Sherlock (Lab)]

I am not going to diss looking for a job in McDonald’s, but I do not want to see anyone unable to pursue the things that they want to do. The noble Lord is absolutely right. We have invested £600 million in a construction package and are working closely with the industry. We have a strategic relationship team in DWP that works with key sectors to try to make sure, if jobs come on stream, that our people get them. We want young people and people who are not in the labour market to get them—those who are struggling with economic inactivity. I am grateful to him for raising that.