Youth Unemployment

Andrew Pakes Excerpts

Tuesday 17th March 2026 Commons Chamber

[Pat McFadden]

The OBR predicts that unemployment will peak this year and then fall in every year of the forecast—[Interruption.] Conservative Members disparage the forecast, but I gently remind them that disparaging the OBR did not work out too well for them a few years ago. In fact—to make a more serious point—the country is still paying the price for the fact that they did so, so I suggest that they learn that lesson.

[Andrew Pakes (Peterborough) (Lab/Co-op)]

I thank my right hon. Friend for the care and consideration he has shown in putting this package together. I am delighted today to be joined in the House by some inspiring apprentices from Caterpillar in my constituency, who have been talking about their experiences of moving into work. This matters in Peterborough, because we have one of the highest levels of youth unemployment for a generation, and it needs tackling. Can my right hon. Friend assure me that the work we are doing will not just benefit large employers such as Caterpillar, but put in place opportunities in the supply chain for small and medium-sized enterprises, so the brilliance of the apprenticeships we have at Caterpillar is extended to more and more young people in Peterborough?

[Pat McFadden]

I thank my hon. Friend for his deep interest in this issue. I have visited his constituency, and I give a warm welcome to the apprentices from Peterborough who are in the Chamber today. He asked about supply chains and small and medium-sized businesses. Those businesses will benefit from the hiring bonus for a young apprentice, which is why the Federation of Small Businesses has welcomed this package, describing it as a “game changer” and a “decisive step forward”.