Youth Unemployment

Lord Sharpe of Epsom Excerpts

Thursday 16th October 2025 Lords Chamber

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.