Youth Unemployment

Baroness Stedman-Scott Excerpts

Thursday 5th February 2026 Lords Chamber

[Baroness Smith of Malvern (Lab)]

We have looked at information from around the UK and from previous job subsidy schemes to help to design this. Of course, the first six job guarantee areas that I mentioned in the original Answer include one that covers a significant area of Wales. We will also use the experience of that to build the national rollout that will come in the autumn.

[Baroness Stedman-Scott (Con)]

My Lords, recent analysis shows that in 2025-26 the real cost of hiring an 18 to 20 year-old on the minimum wage has risen by around 13% compared with just over 3% for someone on average earnings, despite under-21s largely being outside employer national insurance contributions. In light of this, what assessment have the Government made of the combined impact of the national insurance contributions and minimum wage policy on youth employment, and how are they ensuring that young people are not priced out of entry-level work or any other part of the labour market?

[Baroness Smith of Malvern (Lab)]

We made a commitment to equalise the 18 to 20 national minimum wage with the national living wage. We asked, as all recent Governments have done, the independent Low Pay Commission to recommend youth rates to enable us to do that, and we also included within the remit the expectation that it would consider how to do this in a way that avoids increases in unemployment. The April 2026 uplift ensures that the Government are taking cautious steps towards achieving this commitment, and that is the way we will continue to progress.