Youth Unemployment

Alex McIntyre Excerpts

Wednesday 28th January 2026 Commons Chamber

[Helen Whately]

My right hon. Friend is absolutely right. Summer and holiday jobs are important ways for young people to gain experience before they leave education and seek full-time jobs, but there has been a shocking decline in the availability of such jobs because of this Government, who have increased regulation and the cost of employment—that is exactly the problem.

On exactly the point about regulation and red tape, the Employment Rights Bill is making it harder for businesses to employ people. Labour says that it wants to achieve growth, but its policies are obviously going to achieve the exact opposite. The problem is that Labour Members do not understand business. Have they any idea how hard it is to break even, let alone to make a profit; any idea how hard it is for people who have started a business to bring in enough to cover the payroll each month, never mind pay themselves; or any idea how hard it is for business owners to make their staff redundant because they cannot afford to keep paying them? Of course they do not, because how many Labour Front Benchers have worked in a business—I am not counting union officials—let alone run one?

[Alex McIntyre (Gloucester) (Lab)]

As my previous career was in advising businesses up and down the country, I take some issue with the hon. Lady’s point that there is no experience among Labour Members. She says that taxes, particularly the rise in national insurance, are causing the rise in youth unemployment, but does she know at what level of income young people, specifically those under 21, start to attract national insurance contributions?

[Helen Whately]

I am perfectly well aware of the policy on national insurance. I take the hon. Gentleman’s point that some Labour MPs do have business experience, but if we look at Labour Front Benchers, particularly those in the Cabinet, we will see that they are few and far between. If he has been talking to businesses—he clearly knows some—he will hear them say, as they have said directly to me and many of my hon. Friends, that it is the Labour Government’s policies that are making it so hard and so expensive to employ people, particularly young people. Even if Government Members do not have business experience, they could and should listen to what businesses have been telling them.

For instance, Kate Nicholls of UKHospitality said that Labour’s 2024 Budget did “unthinkable damage” to the sector. She was backed up by her colleague, Allen Simpson, who said recently that if the Government continue their approach,

“we will only see job losses and business closures accelerate.”

That sector has shed over 100,000 jobs under this Government.

Jane Gratton, from the British Chambers of Commerce, said that Labour’s policies are

“deeply worrying for employers. They will increase employment costs, complexity and risk for firms, particularly SMEs…Government needs to help not hinder businesses”.

That is the crux of the matter: Labour sees businesses as a cash cow, not as the engine of the economy, and young people in particular are suffering as a result.

Before businesses start letting people go, they generally stop hiring, and that is what they are doing. And when they stop hiring, who gets hit hardest? Young people. By hitting hospitality—all those pubs and cafés where people get their first jobs—the Government are hitting young people again. The simple fact is that there are fewer jobs for young people under this Government. This unemployment disaster for young people is not something that has just happened on this Labour Government’s watch—it is a disaster of their making.