Oral Answers to Questions

Brian Mathew Excerpts

Tuesday 10th March 2026 Commons Chamber

[Freddie van Mierlo (Henley and Thame) (LD)]

11. What assessment she has made of the potential impact of the autumn Budget 2025 on levels of youth unemployment.

[Brian Mathew (Melksham and Devizes) (LD)]

18. What assessment she has made of the potential impact of the autumn Budget 2025 on levels of youth unemployment.

[The Parliamentary Secretary to the Treasury (Torsten Bell)]

Last week, the Office for Budget Responsibility set out its updated forecast for the UK economy, including for unemployment to peak this year before falling in each and every year thereafter. Longer-term problems for young people have been building in our labour market for far too long, with employment rates that are too low and levels of those not in education, employment or training soaring in the last Parliament. We will not allow a generation of young people to be left behind, which is why the Government have committed £820 million for the youth guarantee, strengthening employment support and guaranteeing jobs for the long-term unemployed.

[Torsten Bell]

The hon. Member’s phrasing of his question was very telling about the challenges we all face in our labour market, because while we have seen more jobs created over the last year, there is a longer-term challenge with youth unemployment. If we look at the last Government, we never saw youth employment rates recover to the level seen under the previous Labour Government after the financial crisis, which was exactly the experience he mentioned.

It is important that we grapple with that long-term challenge, and there is the newer challenge with the huge increase in NEET rates in the last Parliament specifically. We absolutely need to focus on both of those, which is why we are focusing apprenticeship funding on young people in particular, why we are introducing the youth guarantee, and why we have the independent review led by Alan Milburn to focus on the root causes of these challenges.

[Brian Mathew]

The Government’s changes to employer national insurance contributions have made it more expensive for employers to take on staff, particularly in the hospitality sector, which employs a high proportion of young people and part-time workers. Does the Minister agree that these changes have made it more difficult for young people in Melksham and Devizes and across the country to get a foot on the career ladder and start their working lives?

[Torsten Bell]

I think all of us recognise that our hospitality and retail sectors have had a difficult time in recent years. For retail, that goes back before the pandemic, with the growth of online shopping. The squeeze on energy costs in the outrun of the pandemic has squeezed how much people are spending on hospitality.

Specifically on the hon. Member’s question about national insurance, I am sure he is aware that those under the age of 21 and on youth apprenticeships are exempt from national insurance entirely. I would gently point out that the youth employment pattern we see in the labour market long predates the changes to national insurance last year.